looking to sell within 1.2942-1.2937 | 16 October 2020

Technical observation

GBP went broke down below the supportive zone 1.3012-1.3007; price pulled back to the broken zone and was contained below it before surging to the lower side towards the supportive zone 1.2942-1.2937. GBP then penetrated below the same zone with a big red candle and currently it is trading below it with an increasing bullish momentum. I expect a loss of this upward movement within 1.2942-1.2937 for a possible momentum to the lower side. My advice, wait for a correction to the zone 1.2942-1.2937 and a rejection within it to sell GBP with your take profit at 1.2863 and stop loss at 1.2962.

Trade recommendation

Wait for a correction to 1.2942-1.2937 to sell GBP.