We're neutral | 06 July 2021

Technical observation

GBP is trading with an increasing bullish bias above a supportive level 1.3867, despite this upwards movement I expect a correction to the level I have mentioned and a rejection at it to pick long positions towards the resistance level 1.3999. My advice, wait for a retracement to the key level 1.3867 and a rejection at it to buy GBP with your take profit at 1.3999 and stop loss at 1.3836. In case of a clear breakout above the level 1.3999 with a big green candle, I expect a correction to the just broken line followed by a bounce at it for a further surge to the upper side. As long as price is contained above the level 1.3867, I can only recommend bullish positions.

Trade recommendation

Remain flat.