Remain long | 21 September 2020

Technical observation

GBP penetrated above a zone 1.2781-1.2753 with a big green candle then rose up to a resistance line 1.3290. It then broke above the resistance level but was not contained above it. Price penetrated below the same line then declined up to the zone 1.2781-1.2753 and bounced within it. GBP is currently trading with an increasing bullish bias and I expect this upwards movement to continue to the line 1.3290 followed by a possible clear break above it with a big green candle. If you went long with this pair within the zone 1.2781-1.2753 after a bounce, remain long with your take profit at 1.3290.

Trade recommendation

Remain long with your take profit at 1.3290 and stop loss at 1.2554.