Expecting a momentum to the level 1.3194 | 06 December 2021

Technical observation

On the 4 hour chart above, price retraced to the resistance zone 1.3363-1.3352 then bounced at it, since then it has been trading with an increasing bearish bias and I expect this downwards movement to continue to the supportive level 1.3194 followed by either a clear breakout below it with a big red candle, or a bounce at it followed by another correction to the above mentioned zone. If you are currently holding short positions with this pair, remain in the trade and pick your profits at 1.3194, on the other hand, if you are neutral with this pair, remain so and wait for either a breakout or another correction to the zone 1.3363-1.3352 to sell GBP.

Trade recommendation

Remain short with your take profit at 1.3194.