Pick long positions within 1.3661-1.3599 | 20 August 2021

Technical observation

GBP is trading with an increasing bearish bias within the supportive zone 1.3661-1.3599, I expect a loss of this bearish movement right now within the zone mentioned above followed by a surge to the upper side, however, price can still penetrate below the same zone with a big red candle, if this happens, I anticipate the value of this pair to plummet to the supportive level 1.2565 after a retracement to the just broken zone. My advice, buy a bounce within the zone 1.3661-1.3599 with your take profit at 1.4615 and stop loss at 1.3326. In case of a breakout below the zone 1.3661-1.3599, wait for a pullback to the same zone before you short GBP.

Trade recommendation

Pick long positions within 1.3661-1.3599 with your take profit at 1.4615.