We are flat temporarily | 07 May 2020

Technical observation

GBP is trading with an increasing bearish momentum towards the supportive zone it established around 1.2209-1.2173. I expect either a rejection of this downwards movement within the zone for bullish price rally, or, a clear penetration below the zone with a big red candle for bearish price rally. Remain flat and wait for a pullback to the above-mentioned zone and a rejection within it to re-buy GBP with your take profit at 1.2746 and stop loss at 1.1978. In case of a breach below 1.2209-1.2173, wait for a correction and a bounce within it confirming possible bearish price movements before you pick short positions.

Trade recommendation

Remain flat.