Remain short | 29 June 2020

Technical observation

Following its rejection within the resistance zone 1.2464-1.2451, GBP has been rallying steadily with an increasing bearish momentum. My expectation is a decline to the supportive line 1.2293 followed by either a clear breakout below the line with a big red candle or a bounce at it followed by a retracement to the zone 1.2464-1.2451. If you sold this pair within the zone 1.2464-1.2451 after a bounce, remain short with your take profit at 1.2293 and stop loss at 1.2537. On the 4-hour chart above, as long as price is contained below the zone 1.2464-1.2451, we can only anticipate bearish movements of price.

Trade recommendation

Remain short with your take profit at 1.2293.