Remain short | 01 July 2020

Technical observation

For the past two weeks, GBP has been rallying with an increasing bearish momentum. This week, I expect this bearish rally to continue towards the supportive level 1.1647. If you went short with this pair within the resistance zone 1.2690-1.2594 after a rejection, remain short with your take profit at 1.1647 and stop loss at 1.3087. In case this take profit is triggered and there is a clear penetration below it with a big red candle, I expect a surge to the lower side after a pullback to the just broken line. As it is on the weekly chart above, I can only recommend bearish positions.

Trade recommendation

Remain short with your take profit at 1.1647 and stop loss at 1.3087.