Remain flat | 22 August 2019

Technical observation

GBP is still rallying between a resistance 1.2327 and a support 1.1976 and while the price is between these levels remaining neutral is more ideal. I expect either a rise to the line 1.2327 or a decline to the support 1.1976 followed by a clear penetration below it. In case of bullish movements to 1.2327, wait for a loss of this upward rally at the line to pick short positions with your take profit at 1.1976 and stop loss at 1.2459. Should there be a decline to 1.1976 and a clear penetration below it with a big red candle, wait for a correction and a rejection at it confirming further bearish movements before you sell GBP.

Trade recommendation

Remain flat.