Forex Technical Analysis: Trend potential – Wait for a buy signal

GBPUSD – Flat

Wait for a buy signal

Technical observation

On the daily chart above, GBPUSD is declining towards 1.3754.As long as price remains above this supportive line I still expect a possible rebound to pick long position with an ultimate target at 1.4336 or even higher. As it is on the daily chart, I’m waiting for a clear buy signal to buy this pair at the least risk possible with my stop loss below 1.3754.If price rallies down and does not get rejected at 1.3754 and instead breaks down below it with a big red candle or gaps below it, wait for a pull back to it to confirm price is on a bearish move before you enter short positions towards 1.3302 or even lower.

Technical levels

Resistance levels

R1.1.4056

R2.1.411

R3.1.4192

Pivot:1.4029

Support levels

S1.1.3974

S2.1.3947

S3.1.3865

Trade signal

Wait for a buy signal to buy GBP with your take profit at 1.4336 and stop loss around 1.3620.

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