Remain short | 06 April 2022

Technical observation

GBP is on a clear downtrend on the 4 hour time frame as seen on the chart above. The price retraced to a resistance zone it established 1.3181-1.3166 then bounced below it and since then it has been trading with an increasing bearish bias. If you picked short positions after a bounce, remain in the trade with your take profit at 1.3001 and stop-loss at 1.3250. In case of a clear breakout below the level 1.3001 with a big red candle, I expect the value of this pair to descend further on the other hand, in case of a clear break above the zone 1.3181-3166 with a big green candle; I expect a surge to the upper side.

Trade recommendation

Remain bearish with your take profit at 1.3001.