we're bearish towards 1.3570 | 19 August 2021

Technical observation

GBP retraced to a resistance zone it established at 1.3769-1.3758 but it could not break above it, price bounced within the zone and is currently trading with an increasing bearish bias. I expect this downwards movement to continue to the supportive level 1.3570 followed by a break below it with a big red candle, or a bounce at it followed by a retracement to the zone I mentioned above. If you picked short positions within the zone 1.3769-1.3758 after a bounce, remain short with your take profit at 1.3570 and stop loss at 1.3810. As long as GBP is contained below the zone 1.3769-1.3758, I can only recommend short positions for this pair.

Trade recommendation

Remain short with your take profit at 1.3570.