We're neutral | 17 February 2020

Technical observation

GBP is trading between a resistance zone 1.3341-1.3281 and a supportive level 1.2553 on an increasing bullish momentum. My expectation is a continuation of this upwards movement followed by a rejection within 1.3341-1.3281. Unless there is a clear breakout above the zone with a big green candle, a momentum to the lower side can be expected. I highly recommend remaining flat and looking for a sell position within the resistance zone with your take profit at 1.2553 and stop loss at 1.3517. If price breaks below the line 1.2553 then a decline to the lower side to the key level 1.1960 can be anticipated.

Trade recommendation

Remain neutral.