We are bearish towards 1.3001 | 05 April 2022

Technical observation

On the 4 hour chart above price retraced to a resistance zone it established at 1.3190-1.3176 but did not break above it, it was sustained below the zone and since then this pair has been trading with an increasing bearish bias. As long as GBP is contained below the zone I have mentioned above I expect a continuation of this downwards movement to the supportive level 1.3001 followed by either a clear breakout below it with a big red candle or a bounce at it followed by another correction to the zone 1.3190-1.3176. My advice, if you are currently holding short position with the pair above, remain in the trade with your take profit at 1.3001.

Trade recommendation

Remain short with your take profit at 1.3001.