Forex Technical Analysis: Trend potential – Wait for a correction to 1.3528-1.3406

GBPUSD – Flat

Technical observation

GBP/USD is on downward trend, price is rallying down towards 1.2716 and I expect a rejection at it followed by a correction to the key resistance zone 1.3528-1.3406 and a rejection within it for possible bearish momentum towards 1.2716.In case of a breakout below 1.2716,wait for a correction to it before you continue short with the pair towards the support 1.1996.Long positions may only be advisable in case there’s a clear breach above the zone 1.3528-1.3406 with a big green candle followed by a retracement to it.Only short positions can be recommended on the weekly chart above.

Technical levels

Resistance levels

R1.1.3126

R2.1.3248

R3.1.3446

Pivot

1.305

Support levels

S1.1.2928

S2.1.2852

S3.1.2654

Trade signal

Wait for a correction to 1.3528-1.3406 to short GBP/USD.

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