Wait for a correction to sell GBP | 01 August 2019

Technical observation

Yesterday GBP rose towards the line 1.2327 it recently penetrated below but could not reach it and ended up closing as a bullish pin bar, currently price is still rallying below the line and I still expect a retracement to it and a bounce for bearish price rally towards 1.1976 followed by a clear penetration below it for a further decline in price. My advice, wait for a correction to 1.2327 and a rejection at it to short GBP with your take profit at 1.1976 and stop loss at 1.2460. In case of a clear penetration of price below 1.1976, wait for a pullback to it confirming further bearish price rally before you continue short with GBP.

Trade recommendation

Wait for a retracement to sell GBP.