Forex Technical Analysis: Trend potential – Short GBP around 1.3512

GBPUSD – Flat

Short GBP around 1.3512

Technical observation

On the daily chart above GBP/USD has been trading on a downward trend, it broke below a support zone 1,3754-1.3701 with a big red candle but did not correct to it, instead price rallied down and retraced at a resistance line 1.3512.Currentlt price is below it and I expect a pullback and a rejection of price from it for possible bearish momentum towards 1.3302 and a possible breakout below 1.3302 for a further decline in price towards 1.3028.My advice, wait for a retracement to 1.3512 and a rejection of price from it then short GBP/USD at it with your ideal target at 1.3302 and stop loss around 1.3635.

Technical levels

Resistance levels

R1.1.3514

R2.1.3558

R3.1.3632

Pivot

1.3486

Support levels

S1.1.344

S2.1.3411

S3.1.3337

Trade signal

Wait for a retracement to 1.3512 then short GBP/USD at it with your ideal target at 1.3302 and stop loss around 1.3635.

FreshForex cancels commissions!

You may check other analytical reviews on FreshForex website. Source: freshforex.com.