Wait for a correction to the zone 1.3788-1.3778 | 20 September 2021

Technical observation

GBP broke below the supportive zone 1.3788-1.3778 with a big red candle then rallied further downwards with an increasing bearish bias. I expect a loss of this downwards movement followed by a correction to the just broken zone and a rejection within it to sell GBP with my take profit at 1.3603 and stop loss at 1.3822. In case of a clear breakout below the level 1.3603 with a big red candle, I expect a further surge to the lower side after a pullback to it. On the 4 hour chart above, as long as price is contained below the zone 1.3788-1.3778, only short positions look ideal and I can recommend for this pair.

Trade recommendation

Wait for a correction to the zone 1.3788-1.3778 to sell GBP.