We're flat | 31 May 2019

Technical observation

Yesterday GBP declined to the line 1.2600 and is still trading around it, I expect a clear breakout below the support followed by a correction and a rejection at it for bearish price rally towards the level 1.2428.Remain flat and wait for a clear breakout below the above mentioned line with a big red candle and a retracement to it to sell GBP with your take profit at 1.2528 and stop loss at 1.2653.Should there be a clear penetration below the level 1.2428 then more bearish momentum of this pair can be anticipated. As it is on the 4 hour chart above, only short positions look ideal and may be recommended for GBP.

Trade recommendation

Remain flat.