We're flat | 07 July 2021

Technical observation

GBP is trading with an increasing bullish bias above a supportive zone 1.3683-1.3655; however, I expect a loss of this bullish movement followed by a clear breakout below the zone I have mentioned above with a big green candle. My advice, remain neutral and wait for a break below the zone 1.3683-1.3655 followed by a correction to it to sell GBP with your take profit at 1.3064. In case of a clear breakout below the supportive level 1.3064 with a big red candle, I expect the value of this pair to plummet further to the lower supportive level 1.2227. If price is contained above the zone 1.3683-1.3655, buy a bounce within the zone.

Trade recommendation

Remain neutral.