Buy GBP within 1.2954-1.2930 | 18 February 2020

Technical observation

Yesterday GBP retraced towards a supportive zone it established around 1.2954-1.2930 but did not reach it. I still expect more of this bearish movement towards the zone followed by a rejection within it. My advice, wait for a correction to the above mentioned zone followed by a rejection within it to buy GBP with your take profit at 1.3340 and stop loss at 1.2770. If this take profit is reached and there’s a clear penetration above it with a big green candle, more bullish movements can be anticipated. Short positions can only be recommended below the zone 1.2954-1.2930 towards 1.2517.

Trade recommendation

Buy GBP within 1.2954-1.2930 with your take profit at 1.3340.