Wait for a retracement | 05 August 2020

Technical observation

GBP is rallying with an increasing bullish bias above a supportive zone it established around 1.2613-1.2690, however, I expect a loss of this bullish momentum followed by a pullback to the zone mentioned above and rejection within it to pick long positions. My advice, wait for a retracement to the zone 1.2613-1.2690 and bounce within it to buy GBP with your take profit at 1.3411 and stop loss at 1.2325. On your way upwards the key levels to look for are; 1.3411, 1.4505 and 1.5737. On the chart above as long as price is contained above the zone 1.2613-1.2630, you can only expect upwards momentum of GBP.

Trade recommendation

Wait for retracement to the zone 1.2613-1.2690 to buy GBP.