Forex Technical Analysis: Trend potential – Wait for a correction to 1.3473-1.3438

GBPUSD – Flat

Technical observation

On the daily chart above, GBP/USD broke below a support zone 1.3473-1.3438 and is pretty much bearish having retraced to the zone twice and currently price has formed bearish trend continuation candles. This pair seems to be headed to the support level 1.3054 hence I expect a bearish price rally towards 1.3054 and a possible breakout below it for a further decline in price towards 1.2795.Only short positions can be recommended as long as price remains below the resistance zone 1.3473-1.3438.A breakout above this zone may invalidate short positions and price could head upwards towards the resistance line 1.3808.

Technical levels

Resistance levels

R1.1.3448

R2.1.3487

R3.1.3572

Pivot

1.3403

Support levels

S1.1.3363

S2.1.3316

S3.1.323

Trade signal

Wait for a correction to 1.3473-1.3438 to short GBP with your take profit at 1.3054 and stop loss around 1.3623.

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