Remain short towards 1.2423 | 04 July 2019

Technical observation

Yesterday GBP declined as I had predicted and I still expect a continuation of this downwards momentum towards the line 1.2423 and a clear breakout below it. If you went short within the resistance zone 1.2764-1.2738 after a rejection, hold on to that position with your take profit at 1.2423 and stop loss at 1.2845. In case GBP is does not break below 1.2423 but is rejected at it, wait for a retracement to 1.2764-1.2738 and a bounce within it to re-sell this commodity. On the daily chart above, as long as price is contained below 1.2764-1.2738, only bearish price movements of this pair can be anticipated.

Trade recommendation

Remain short with your take profit at 1.2423 and stop loss at 1.2845.