20 Juli 2018, GBP/USD
Technical observation
Instead of pulling back to the resistance zone 1.3317-1.3276,GBP/USD yesterday broke down below a support level 1.3050 with a big red candle. I expect a retracement to the just broken level and a rejection of price within it for bearish momentum towards 1.2775.You can remain flat temporarily and wait for the pull back to 1.3050 then short GBP from it with your take profit at 1.2775 and stop loss around 1.3157.Only short positions look ideal on the chart above and can be recommended towards 1.2775 and in case of a break below 1.2775, wait for a correction to it then continue short with the pair.
Technical levels
Resistance levels
R1.1.3284
R2.1.3332
R3.1.3471
Pivot
1.3199
Support levels
S1.1.3145
S2.1.3055
S3.1.2916
Trade signal
Remain flat temporarily.
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