Sell a bounce within 1.3006-1.2970 | 08 October 2020

Technical observation

GBP is trading below a resistance zone 1.3006-1.2970 with an increasing bullish momentum; however, I expect a loss of this bullish movement within the same zone for possible bearish movements of this pair. My advice, wait for a bounce within the zone 1.3006-1.2970 to sell GBP with your take profit at 1.2626 and stop loss at 1.3170. In case there is a penetration below the line 1.2626 with a big red candle, wait for a correction to it and a bounce confirming further bearish movements of price before you continue short with this pair towards the supportive zone marked at 1.2226-1.2194.

Trade recommendation

Wait for a bounce to sell GBP.