Place a buy order within 1.2400-1.2393 | 06 May 2020

Technical observation

GBP is retracing to a supportive zone it established around 1.2400-1.2393 and I expect a rejection of it within the zone for possible bullish price rally. Remain flat temporarily and wait for a correction to the zone 1.2400-1.2393 and a rejection within it to buy GBP with your take profit at 1.2521 and stop loss at 1.2350. In case there is a clear breach below the zone 1.2400-1.2393 with a big red candle, I expect bearish price rally towards the support 1.2259 after a retracement and a rejection within it. However, I expect further upwards movements towards 1.2642 in case of a clear break above the line 1.2521.

Trade recommendation

Remain flat temporarily.