Remain flat | 16 July 2019

Technical observation

GBP is trading on an increasing bearish momentum below a resistance zone 1.2747-1.2709, my expectation is a retracement to the above mentioned zone followed by a rejection within it for bearish rally towards the level 1.2327 and a possible breakout below it for a further decline in value towards the lowest level 1.1976. Remain flat and wait for a correction to 1.2747-1.2709 to sell GBP with your take profit at 1.2327 and stop loss at 1.2860. On the chart above long positions may only be recommended above the zone 1.2747-1.2709 in case of a clear penetration above it with a big green candle and a pullback to it.

Trade recommendation

Remain flat.