Wait | 07 February 2020

Technical observation

After trading above a supportive zone 1.2984-1.2948 for several days, yesterday GBP penetrated below the zone with a big red candle and is currently rallying below it. A correction to the just broken zone followed by a rejection within it can be expected for a possible downward momentum towards the level 1.2562. If this level is reached and there’s a clear break below it further bearish rally towards the key level 1.2052 can be expected. My advice, wait for a correction to the zone 1.2984-1.2948 and a rejection within it to sell GBP with your take profit at 1.2562 and stop loss at 1.3090.

Trade recommendation

Wait for a retracement to 1.2984-1.2948 to sell GBP.