We're flat | 04 February 2020

Technical observation

On the daily chart above, price declined steadily with a big red candle instead of rising as I had predicted. This downwards movement could either be a retracement to the supportive zone 1.2984-1.2948 or an indication of an increase in sellers and could lead to a penetration below the zone mentioned above. In case of a rejection of this bearish rally within the zone 1.2984-1.2948 you can pick long positions within it with your take profit at 1.3516 and stop loss at 1.2803. However, should there be a clear penetration below the zone, wait for a correction to it and a rejection before you sell GBP with your take profit at 1.2562.

Trade recommendation

Remain flat.