Wait for a retracement to sell. | 30 July 2019

Technical observation

A few days ago GBP went down a supportive level 1.2404 with a big red candle and since then it has been rallying downwards. I expect a retracement to the just broken line and a bounce at it for bearish movements towards the line 1.1979. Wait for a correction to the level 1.2404 and a rejection at it to sell this pair with your take profit at 1.1976 and stop loss at 1.2523. If this take profit is hit and there’s a clear breach below it then more bearish rally of GBP can be expected. On the daily chart above as long as price is contained below the resistance zone 1.2736-1.2713 only short positions look ideal and may be advisable.

Trade recommendation

Wait for a correction to sell GBP.