Forex Technical Analysis: Trend potential – Short GBP/USD within 1.3831-1.3711

GBPUSD – Flat

Technical observation

On the weekly chart above, GBP/USD broke down below a support zone 1.3831-1.3711 with a big red candle and is currently below it.I expect a correction to the broken zone and a rejection of price within it of a bearish momentum towards the support line 1.3302 and a breakout below it for a further decline in price towards 1.2589,I would advise you sell GBP within 1.3831-1.3711 with your take profit at 1.3302.In case of a breakout below it ,remain short with GBP after a correction to the broken line with your target at 1.2598.Long positions does not look ideal on the chart above and so cannot be recommended.

Technical levels

Resistance levels

R1.1.362

R2.1.3698

R3.1.3857

Pivot

1.354

Support levels

S1.1.3462

S2.1.3382

S3.1.3223

Trade signal

Short GBP within 1.3831-1.3711 with your take profit at 1.3302 and stop loss around 1.4245.

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