We're short towards 1.3750 | 26 August 2021

Technical observation

GBP retraced to a resistance zone 1.3766-1.3758 but could not break above it; price bounced within the zone and it is currently trading with an increasing bearish bias. I expect a continuation of this bearish movement to the supportive level 1.3570 followed by either a clear breakout below it with a big red candle, or a rejection at it followed by another retracement to the zone 1.3766-1.3758. If you sold GBP within the zone I have mentioned above after a bounce, remain short with your take profit at 1.3750 and stop loss at 1.3819. In case there is clear breakout above the resistance zone 1.3766-1.3758 with a big green candle, I anticipate a momentum to the upper side to the key level 1.3980 after a correction to the broken zone.

Trade recommendation

Remain short with your take profit at 1.3750.