Remain short | 14 July 2020

Technical observation

On the daily chart above, a false breakout was seen when price broke above a resistance zone 1.263-1.2601 but was not contained above it, it then penetrated below the same zone then retraced to it and was contained. GBP is currently trading with an increasing bearish bias and expect this downwards movement to continue to the supportive zone 1.2192-1.2161 followed by a clear breakout below it for a further decline in price towards the supportive level marked at 1.1464. My advice, if you sold GBP within the zone 1.263-1.2601 after a rejection, remain short with your take profit at 1.2192 and stop loss at 1.2813.

Trade recommendation

Remain short with your take profit at 1.2192.