Wait for a correction to the zone 1.2635-1.2571 | 07 September 2023

Technical observation

GBP broke below the supportive zone 1.2635-1.2571 with a big red candle then closed bearish and today I anticipate a pullback to the broken zone followed by a rejection within it to sell GBP with my take profit at 1.1688 and stop-loss at 1.2998. In case of a clear penetration below the level 1.1688, wait for a pullback to the broken line before you continue short towards the supportive level 1.0363, but if the price rises above the zone 1.2635-1.2571 with a big green candle, remain neutral and wait for a retracement to the broken zone before you pick bullish positions towards the resistance levels 1.3610, 1.4376 or higher.

Trade recommendation

Wait for a correction to the zone 1.2635-1.2571 to sell GBP.