We're flat | 07 June 2021

Technical observation

GBP is trading with an increasing bearish bias between a supportive zone 1.4093-1.4082 and a resistance line , I expect a continuation of this bearish movement to the zone I have mentioned above followed by a rejection within it, however, price can still break below the same zone with a big red candle. In case of a rejection within the zone 1.4093-1.4082, pick long positions within it with your take profit at 1.4233 and stop loss at 1.4035. However, in case of a clear breakout below the zone I have mentioned above with a big red candle, I expect price to plummet to the supportive level 1.3813 after a correction the just broken zone.

Trade recommendation

Remain neutral.