Forex Technical Analysis: Trend potential – Wait for a correction to 1.3317-1.3271 to sell GBP.

GBPUSD – Flat

Wait for a correction to 1.3317-1.3271 to sell GBP.

Technical observation

GBP/USD is rallying below a resistance zone 1.3317-1.3271 and as long as it is contained below it only bearish price momentum can be expected. I am waiting for a correction to the above mentioned zone followed by a bounce within it to sell GBP with my take profit at 1.2706 and stop loss at 1.3579.In case of a breach below 1.2706 then more bearish price rally will be expected towards 1.2427 or even lower. Should there be a clear penetration above 1.3317-1.3271 with a big green candle then bullish momentum of this pair can be anticipated towards the key resistance level 1.3751, or even higher to the resistance level 1.4344.

Trade recommendation

Wait for a correction to 1.3317-1.3271 to sell GBP.

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