Expecting a momentum to the lower side | 17 December 2021

Technical observation

GBP retraced to the resistance zone 1.3363-1.3352 but could not break above it; instead it bounced within it then decline with a big red candle. My expectation is a further surge to the supportive level 1.3194 followed by either a bounce at it or a clear breakout below it with a big red candle. In case you picked short positions within the zone I have mentioned above after a bounce, remain short with your take profit at 1.3194 and stop loss at 1.3426. Should there be a clear breakout above the zone 1.3363-1.3352 with a big green candle, I expect the value of this pair to rise steadily towards the resistance level 1.3496 after a correction to the broken zone.

Trade recommendation

Remain short with your take profit at 1.3194.