Remain short | 03 July 2019

Technical observation

On the daily chart above, GBP retraced to a resistance zone 1.2764-1.2738 but could not break above it and was contained. As long as GBP is contained below 1.2764-1.2738 only short positions look ideal and may be recommended. Right now price is rallying on an increasing bearish momentum and I expect this movement to continue up to the key level 1.2423. If you sold GBP within 1.2764-1.2738 after a bounce, remain short with your take profit at 1.2423 and stop loss at 1.2873, however, if you are currently neutral, remain so and wait for either another correction to 1.2764-1.2738 or a break below 1.2423 to sell GBP.

Trade recommendation

Remain short with your take profit at 1.2423.