we're looking to buy within 1.3788-1.3778 | 08 September 2021

Technical observation

GBP retraced to the supportive zone it established at 1.3788-1.3778 and it is currently trading with an increasing bearish bias within it. My expectation is a loss of this bearish movement within the zone for a rally to the upper side. My advice, buy a bounce within the supportive zone 1.3788-1.3778 with your take profit at 1.3883 and stop loss at 1.3741. On the 4 hour chart above, as long as price is contained above the zone 1.3788-1.3778, I expect a momentum to the upper side; however, in case of a clear breakout below the zone with a big red candle, I anticipate a retracement to the broken zone followed by a rally to the supportive level 1.3603.

Trade recommendation

Buy a bounce within the zone 1.3788-1.3778 with your take profit at 1.3883.