Expecting a rally to the level 1.3570 | 23 July 2021

Technical observation

GBP retraced to the resistance zone 1.3774-1.3758 but could not break above it; price bounced within zone and it is currently trading with an increasing bearish bias. I expect this downwards movement to continue to the supportive level 1.3570 followed by either a clear breakout below it with a big red candle or a bounce at it followed by a another correction to the zone I have mentioned above. If you sold GBP within the zone 1.3774-1.3758 after a bounce, remain short with your take profit at 1.3570 and stop loss at 1.3828. In case of a penetration below the line 1.3570 with a big red candle, wait for a correction to it before you continue short.

Trade recommendation

Remain short with your take profit at 1.3570.