looking to sell | 03 May 2018

Technical observation

GBPUSD recently broke down below a support zone 1.3783-1.3753 with a big red candle and is still below it.Currently price is showing signs of retracing to the zone and I expect a rejection of it within or around the zone for possible bearish movement of price towards the support line 1.3512 and a breakout below 1.3512 for a further decline in price towards 1.3302.I would advise you sell GBP after the second retracement to the zone just to confirm this is not a false breakout, with your take profit at 1.3512 and stop loss around 1.3888.You can continue short with GBP in case of a breakout below 1.3512.

Technical levels

Resistance levels

R1.1.3894

R2.1.4008

R3.1.4195

Pivot

1.3825

Support levels

S1.1.3707

S2.1.3634

S3.1.3446

Trade signal

Wait for a correction to the broken zone then sell GBP after the second retracement to it with your take profit at 1.3512 and stop loss around 1.3888.