Wait for a correction | 12 October 2020
12 October 2020, GBP/USD
Technical observation
On the chart above, price penetrated above a resistance zone 1.3006-1.2970 with a big green candle and is still trading with an increasing bullish bias. My expectation is a correction to the just broken zone followed by a clear bounce within it for bullish price rally towards the resistance line 1.3386. My advice, wait for a correction to the zone 1.3006-1.2970 and a rejection within it to buy GBP with your take profit at 1.3386 and stop loss at 1.2809. In case price breaks below the zone 1.3006-.12970 and is contained below it, then the penetration above the zone was false and you can anticipate bearish movements.
Trade recommendation
Wait for a correction to 1.3006-1.2970 to buy GBP with your take profit at 1.3386.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
