Wait | 15 September 2021

Technical observation

Just like EUR, GBP is trading with an increasing bearish bias above a supportive zone it established at 1.3796-1.3789. I expect a further decline to the zone I have mentioned followed by a decline within it to pick long positions with my take profit at 1.3902 and stop loss at 1.3749. On the other hand, in case price does not bounce within the zone and instead it penetrates below it with a big red candle, I expect a retracement to the just broken zone followed by a rejection within it to short GBP towards the supportive level 1.3681. Further bullish movements of price can be anticipated in case of a clear break above the level 1.3902.

Trade recommendation

Remain neutral temporarily.