Flat | 21 August 2019

Technical observation

On the weekly chart above GBP is rally above a supportive level 1.2004 on an increasing bearish momentum. My expectation is either a clear penetration below the line with a big red candle or a correction to the resistance line 1.2578. In case of a correction to 1.2578, wait for a bounce at it to re-sell GBP with your take profit at 1.2004 and stop loss at 1.2886, and should there be a penetration below 1.2004 wait for a retracement to it and a bounce to sell this pair with your take profit at 1.1533 and stop loss at 1.2333. Right now, remain neutral and wait for either a correction or a breakout to sell GBP.

Trade recommendation

Remain flat.