Remain short | 09 September 2020

Technical observation

On the chart above, price corrected to a resistance line it established at 1.3414 but could not penetrate above it. GBP bounced at the above mentioned and is currently trading with an increasing bearish momentum. I expect this downwards movement to continue to the supportive zone marked at 1.2681-1.2586 followed by a clear breakout below it for further bearish movements of price. If you sold GBP at the line 1.3414 after a bounce, remain short with your take profit at 1.2681 and stop loss at 1.3794. In case of a break above the line 1.3414, wait for a correction to it and a bounce before you buy GBP.

Trade recommendation

Remain short with your take profit at 1.2681.