Forex Technical Analysis: Trend potential – We’re short towards 1.2113

GBPUSD – Flat

We're short towards 1.2113

Technical observation

GBP/USD recently bounced at a resistance 1.2696 and is currently rallying on an increasing bearish momentum towards a support 1.2113. My expectation is either a bounce at the support followed by a retracement to 1.2696 to re-sell GBP, or a clear penetration below it with a big red candle and a correction to it to sell GBP. In case you sold this pair at 1.2696, I would advise you hold on to that position with your take profit at 1.2113 and stop loss at 1.2889 but If you had not traded this pair yet, remain flat and wait for another correction to 1.2696 or a clear breakout below 1.2113 with a big red candle and a correction to it to sell GBP.

Trade recommendation

Remain short with your take profit at 1.2113 and stop loss at 1.2889.

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