we're bearish towards 1.2945 | 29 October 2020

Technical observation

GBP retraced to a resistance zone 1.3019-1.3012 but could not break above it; price bounced within the zone and is currently trading with an increasing bearish bias below it. I expect this bearish movement to continue to the supportive zone 1.2945-1.2937 followed by a clear breach below it with a big red candle. My advice, if you sold GBP within the resistance zone mentioned above after a bounce, hold on to that position with your take profit at 1.2945 and stop loss at 1.3038. In case of a break below 1.2945-1.2937, you can anticipate the value of this pair to plummet further towards the key level 1.2863.

Trade recommendation

Remain short with your take profit at 1.2945.