Forex Technical Analysis: Trend potential – Buy GBP around 1.3787-1.3754

GBPUSD – Flat

Technical observation

On the daily chart above, GBP retraced at a support zone 1.3787-1.3754 twice but could not penetrate below it, price then rose up to a resistance line1.4336 but got rejected then declined steadily towards the zone. I’m waiting for another retracement to this zone to pick a long position with my take profit at 1.4336.If this resistance line is broken, then I’ll wait for a retracement to the just broken line to pick a buy trade with my take profit set at 1.4701.According to the daily chart above, long positions seems more ideal and can safely be recommended especially while price is above the zone.

Technical levels

Resistance levels

R1.1.4056

R2.1.411

R3.1.4192

Pivot: 1.4031

Support levels

S1.1.3974

S2.1.3947

S3.1.3865

Trade signal

Looking to buy around 1.3787-1.3754 with my take profit at 1.4336 and stop loss around 1.3595.

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