we're bearish towards 1.3797 | 22 June 2021

Technical observation

GBP rose steadily to the resistance level 1.3934 as I had predicted and it was sustained below it; as long as price is below the line, I expect a rally to the lower side. If you picked short positions at the resistance level 1.3934 after a bounce remain in the trade with your take profit at 1.3797 and stop loss at 1.3975. In case of a clear penetration below the supportive level 1.3797 with a big red candle, you can expect a further surge to the lower side after a correction to the just broken line; however, if price does not penetrate below it and is rejected, I expect another retracement to the resistance level 1.3934 and a bounce at it to re-sell GBP.

Trade recommendation

Remain short with your take profit at 1.3797.