We're neutral | 25 July 2019

Technical observation

GBP is trading on an increasing bearish bias above a supportive key level 1.2394. I expect either a clear breakout below the line with a big red candle or a rejection at it followed by a rise to the 1.2747-1.2709. In case of a clear break below 1.2394, wait for a correction and a bounce at it to sell GBP with your take profit at 1.1976 and stop loss at 1.2483, and in case there’s no break below 1.2394, wait for a pullback to the resistance zone 1.2747-1.2709 and a bounce within it to sell GBP with your take profit at 1.2394 and stop loss at 1.2892. Long positions may only be recommended above 1.2747-1.2709 towards 1.3281.

Trade recommendation

Remain neutral.