Flat | 04 December 2020

Technical observation

Yesterday GBP rose as i had anticipated and hit the take profit at 1.3486, however, it did not break above the line and instead bounced at it. Right now, I expect bearish movement of price towards the supportive zone marked at 1.3310-1.3298 followed by a bounce within it to re-buy GBP. However, In case there is no retracement to the above-mentioned zone but a clear breakout above the line 1.3486 with a big green candle, wait for a correction to it and a bounce before you buy this pair. As it is on the chart above, as long as price is contained above 1.3310-1.3298, the value of this pair can only plummet upwards.

Trade recommendations

Remain flat.