Remain flat | 04 August 2020

Technical observation

GBP penetrated above a resistance zone 1.2627-1.2603 with a big green candle. Price then rose steadily up to a resistance level marked at 1.3097. My expectation is a pullback to the supportive zone 1.2627-1.2603 followed by a clear rejection within it for a surge to the upper side. My advice, remain neutral and wait for a correction to the supportive zone mentioned above and a rejection within it to buy GBP with your take profit at 1.3097 and stop loss at 1.2457. In case of s clear breach above 1.3097, you can anticipate further upwards movements of this pair towards the key level 1.3515.

Trade recommendation

Remain neutral.