Wait | 06 May 2021

Technical observation

GBP is trading with an increasing bearish bias below a resistance level 1.4010, unless there is a clear breach above the level mentioned above, I expect a decline to the supportive zone 1.3416-1.3378. In case of a bounce within this zone, I expect a rally to the upper side but not for long, however, if price break below the same zone with w big red candle, I expect a correction to the just broken zone and a rejection within it for a surge to the lower side. As it is on the daily chart above, remaining neutral with this pair is ideal than picking any position. I can only recommend long positions above 1.4010, and short positions below 1.3416-1.3378.

Trade recommendation

Remain neutral.