We're bullish towards 1.3698. | 28 December 2020

Technical observation

Price pulled back to the supportive level 1.3503 but did not break below it; It bounced at the line and is currently rallying upwards. If you bought this pair at the line 1.3503 after a bounce, remain long with your take profit at 1.3698 and stop loss at 1.3448. Should there be a clear breakout below the line 1.3503 with a big red candle, I expect the value of GBP to surge to the lower side. You can wait for a correction to the just broken line and a bounce at it to sell GBP with your take profit at 1.3296. However, as long as price is contained above the line 1.3503, you can only expect a momentum to the upper side.

Trade recommendation

Remain long with your take profit at 1.3698.