Forex Technical Analysis: Trend potential – Wait for a correction to 1.2914-1.2906

GBPUSD – Flat

Wait for a correction to 1.2914-1.2906

Technical observation

GBP is rallying below a resistance zone 1.2914-1.2906, I expect a correction to it followed by a bounce within it to sell GBP with my take profit at 1.2823 and stop loss at 1.2943.In case of a breach below the support 1.2823 then more bearish momentum will be anticipated towards the lower support marked at 1.2725.Right now I am waiting for the pullback to 1.2914-1.2906 to sell this pair. As long as price is contained below 1.2914-1.2906 only short positions look ideal and may be recommended. Long positions may only be recommended in case of a clear penetration above 1.2914-1.2906 followed by a correction to it.

Trade recommendation

Wait for a correction to 1.2914-1.2906 to sell GBP.

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