Remain neutral | 14 January 2021

Technical observation

On the chart above, price retraced to a supportive zone 1.3477-1.3460 and it was contained above it before rising steadily to the line 1.3695. Right now, GBP is trading with an increasing bearish bias below the resistance line mentioned above and I expect this downwards movement to continue to the zone 1.3477-1. 3460 followed by a bounce within it to re-buy this pair. My advice, remain flat and wait for a correction to the zone mentioned above and rejection within it to buy GBP with your take profit at 1.3695 and stop loss at 1.3388. You can anticipate further bullish movements in case if a break above 1.3695.

Trade recommendation

Remain neutral.