We're flat | 04 May 2020

Technical observation

GBP is rose towards the resistance zone 1.2770-1.2746 but bounced at the level indicated on the chart above. I expect another correction to the supportive zone 1.2209-1.2173 followed by either a rejection within it or a clear breakout below it. In case of a rejection within the support, we anticipate bullish momentum towards the level 1.2770-1.2746, however, should there be a clear penetration below the support with a big red candle, I expect a correction to the just broken zone and a bounce within it for possible bearish price movements towards the supportive level1.1468. Right now, remain flat.

Trade recommendation

Remain neutral.