Wait for a retracement | 25 August 2020

Technical observation

GBP is trading above a supportive level 1.2562 it penetrated above a few weeks ago with a big green candle. My expectation is a pullback to the key level 1.2562 followed by a rejection at it to buy GBP towards the resistance zone 1.3419-1.3391. Wait for a correction to the line 1.2562 and a rejection at it to buy GBP with your take profit at 1.3491 and stop loss at 1.2096. In case price penetrates above the resistance zone 1.3419-1.3391 with a big green candle, I expect the value of this pair to rise even further towards the resistance line marked at 1.4250. Bearish movement can only be expected below 1.2562.

Trade recommendation

Wait for a correction to buy GBP.