We're flat | 01 October 2021

Technical observation

On the weekly chart above price broken below a supportive zone it established at 1.3661-1.3599 with a big red candle. GBP is still trading with an increasing bearish bias below the just broken zone and I expect a sight continuation of this downwards movement. However, I also expect a correction to the same broken zone followed by a rejection within it to pick short positions with my take profit at 1.2565 and stop loss at 1.3914. In case of a clear break below the supportive level 1.2565 with a big red candle, I expect the value of this pair to plummet further to the lower supportive level 1.1518 after a retracement to the broken line.

Trade recommendation

Remain neutral.