We're neutral | 24 June 2019

Technical observation

Following its rejection at a supportive level 1.2578, last week GBP rallied upwards with a big green candle and closed bullish, I still expect more upwards momentum towards the resistance zone 1.3384-1.3264 followed by a rejection within it for bearish movements towards 1.2578. Remain neutral and wait for a pullback to the zone mentioned above and a rejection within it to sell GBP with your take profit at 1.2578 and stop loss at 1.3798, more downwards movements can be expected in case of a clear break below 1.2578 and a retracement to it. On the weekly chart above only short positions may be advisable.

Trade recommendation

Remain flat.