We're bearish towards 1.3472. | 07 January 2021

Technical observation

Yesterday GBP did not rally upwards as I had predicted, instead, it broke below the zone 1.3619-1.3612 with a big red candle, and price then retraced to the just broken zone, bounced within it then rallied downwards. I expect this bearish movement to continue to the zone 1.3472-1.3464 followed by either a clear breakout below it with a big red candle, or a rejection at it. My advice, if you sold GBP within the zone 1.3619-1.3612 after a bounce, remain short with your take profit at 1.3472 and stop loss at 1.3670. As long as GBP is contained below 1.3619-1.3612, you can only anticipate bearish movements of price.

Trade recommendation

Remain short with your take profit at 1.3472.