Forex Technical Analysis: Trend potential – Wait for a correction to 1.2706-1.2665

GBPUSD – Flat

Wait for a correction to 1.2706-1.2665

Technical observation

On the 4hour chart above price is rallying around a key resistance zone 1.2706-1.2665,my expectation is rise to it followed by a bounce within or around it for possible bearish price rally towards 1.2476 or down to the level 1.2425.You can wait for the rise to the above mentioned zone and a bounce within it to pick short position with your take profit at 1.2476 and stop loss at 1.2773. Should there be a clear penetration above 1.2706-1.2665 then bullish momentum will be anticipated towards 1.2927 but as long as this pair is contained below 1.2706-1.2665 only short positions look ideal and may be recommended.

Trade recommendation

Wait for a correction to 1.2706-1.2665 to sell GBP.

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