We're flat | 04 January 2021

Technical observation

GBP penetrated above a zone 1.3461-1.3409 with a big green candle and for the past two weeks it has been trading with an increasing bullish bias. This week, I expect a loss of this upwards movement followed by a retracement to the just broken zone and a bounce within it to buy this pair. My advice, remain flat and wait for a correction to the zone 1.3461-1.3409 and a bounce within it to buy GBP with your take profit at 1.4249 and stop loss at 1.3108. On your way upwards the key levels to look for include; 1.4249 and 1.5022. Bearish positions can only be recommended below the supportive zone 1.3461-1.3409.

Trade recommendation

Remain neutral.