We're flat temporarily | 26 October 2020

Technical observation

For two consecutive days, GBP traded with an increasing bearish momentum towards the supportive zone 1.3024-1.2984. I anticipate further bearish movements of this pair today towards the zone mentioned above followed by a rejection within it for a surge to the upper side. My advice, remain flat temporarily and wait for a correction to the zone 1.3024-1.2984 and a rejection within it to buy GBP with your take profit at 1.3385 and stop loss at 1.2862. In case there is a clear penetration below the supportive zone with a big red candle, wait for a correction to it and a bounce before you sell GBP.

Trade recommendation

Remain flat temporarily.