Wait | 26 March 2020

Technical observation

GBP is trading below a resistance line it established around 1.2059. My expectation is a retracement to the line followed by a rejection at it for bearish price movements, however, a clear penetration above the line could still be a possibility. Remain neutral and wait for a correction to the level 1.2059 to sell GBP with your take profit at 1.1468 and stop loss at 1.2274. In case there’s no rejection at 1.2059 but a clear breach above it with a big green candle, wait for pullback to it and a bounce to confirm a possible change in the direction of movement of price before you pick long positions with your take profit at 1.2746.

Trade recommendation

Wait for a correction to 1.2059 to sell GBP.