We're flat | 02 March 2020

Technical observation

On the weekly chart above, price is trading with an increasing bearish bias towards a supportive zone 1.2785-1.2746. I expect either a loss of this bearish rally within the zone or a breakout below it with a big red candle. In case of a rejection within the zone, wait for a pullback to the resistance line 1.3334 and a bounce at it to re-sell GBP. However, should there be a clear penetration below the zone with a big red candle, wait for a retracement to it and a bounce within it before you sell GBP with your take profit at 1.1958 and stop loss at 1.3079. If you’re currently in a trade, pick your profits within 1.2785-1.2746.

Trade recommendation

Remain flat.