we are flat | 26 November 2021

Technical observation

GBP declined and broke below a supportive zone 1.3445-1.3383 with a big red candle and it is still showing signs of declining even further. However, I expect a retracement to the broken zone followed by a rejection within it and a clear momentum to the lower side. My advice, remain flat and wait for a correction to the zone I have mentioned above then sell GBP within it with your take profit at 1.2505 and stop loss at 1.3758. If price hits this take profit and there is a clear breakout below it with a big red candle, I expect a further surge to the lower supportive level 1.1661. As long as price is sustained below the zone 1.3445-1.3383, I can only recommend short positions.

Trade recommendation

Remain neutral.