Forex Technical Analysis: Trend potential – Short GBPUSD around 1.3808-1.3699

GBPUSD – Flat

Short GBPUSD around 1.3808-1.3699

Technical observation

GBPUSD broke down below a support zone 1.3808-1.3699 and is currently showing signs of retracing to the zone. I expect a rejection of it form the zone for possible bearish movement of price towards the support line 1.3302 and a breakout below it for a further decline in price towards the lower support 1.2795.I would advise you sell GBP on the second retracement to the zone with your take profit at 1.3302 and stop loss around 1.4234.Remain short after a breakout below 1.3302 and a correction to it.Right now as long as price is below 1.3808-1.3699 only short positions look ideal and can be recommended.

Technical levels

Resistance levels

R1.1.372

R2.1.391

R3.1.4217

Pivot

1.3603

Support levels

S1.1.3413

S2.1.3296

S3.1.2989

Trade signal

Wait for a correction to 1.3808-1.3699 to sell GBPUSD.

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