Remain short with your take profit at 1.2080 | 22 March 2019

Technical observation

Last week GBP corrected itself to the resistance zone 1.3428-1.3308 but could not penetrate above it, it was rejected and this week it has been rallying on an increasing bearish momentum towards the key line 1.2080. More bearish momentum towards 1.2080 can be anticipated next week and several weeks to come. In case this pair fails to decline to 1.2080 but instead penetrates above the zone 1.3428-1.3308 with a big green candle, wait for a correction to the just broken zone and a bounce within it confirming possible bullish price rally before you pick long positions towards the key resistance line marked at 1.4615.

Trade recommendation

Remain short with your take profit at 1.2080 and stop loss at 1.3772.