Forex Technical Analysis: Trend potential – Wait for a pullback to (1.3803-1.3756)

GBPUSD – Flat

Technical observation

On the daily chart above, there is a clear breach of price below a support zone (1.3803-1.3756),I expect today’s candle to close completely below the zone ,I also expect a pullback to it and a possible rejection of price within or around the zone for a decline in price towards 1.3507 or even a breakout below it for a further decline in price towards 1.3308 and 1.3050.I would advise you wait for the correction and the rejection of price within or around the zone to short GBP with your take profit at 1.31507 and stop loss around 1.3900.In case there’s a clear break out above the zone, only buy after a correction to the zone .

Technical levels

Resistance levels

R1.1.4011

R2.1.4067

R3.1.42

Pivot

1.3936

Support levels

S1.1.3878

S2.1.3801

S3.1.3668

Trade signal

Wait for a pullback to (1.3803-1.3756) to short GBP with your take profit at 1.3507 and stop loss around 1.3900.

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