Wait | 06 January 2021

Technical observation

Yesterday I predicted a possible bearish movement of price towards the supportive zone 1.3472-1.3404, however, this pair only went down with a big red candle for an hour then went up and broke above the zone 1.3472-1.3404, it was however not contained above the zone and after a few hours went below it. While below the zone 1.3472-1.3404, GBP rose and broke IT confirming the strength of buyers and price is still trading with an increasing bullish momentum. I expect a correction to the zone mentioned above followed by a bounce within it to pick long positions with my take profit at 1.3703.

Trade recommendation

Wait for a correction to the zone 1.3472-1.3404 to buy GBP.