Pick long position within 1.3461-1.3409 | 23 December 2020

Technical observation

On the weekly chart above price is trading within a supportive zone 1.3461-1.3409 with an increasing bearish momentum. I expect a loss of this movement within the same zone for a possible surge to the upper side. My advice, wait for a bounce within 1.3461-1.3409 to buy GBP with your take profit at 1.4249 and stop loss at 1.3073. On your way upwards the levels to look for include; 1.4229, 1.5022 and 1.5856. In case of a clear penetration below the zone mentioned above with a big red candle, you can expect the value of this pair to plummet towards the supportive level 1.2695 after a retracement.

Trade recommendation

Buy a bounce within 1.3461-1.3409 with your take profit at 1.4249.