we're bearish towards 1.3729 | 12 August 2021

Technical observation

GBP retraced to a resistance zone it established at 1.3893-1.3883 and it was contained below the zone. Right now it is trading with an increasing bearish bias and I anticipate a steadily decline to the supportive level 1.3729 followed by either a clear breakout below it with a big red candle or a bounce at it followed by another correction to the zone 1.3893-1.3883. If you picked short position within the zone I have mentioned above after a bounce, remain short with your take profit at 1.3729 and stop loss at 1.3948. Should there be a clear breakout above the zone 1.3893-1.3883 wait for a pullback to it before you buy this pair.

Trade recommendation

Remain short with your take profit at 1.3729.