22 September 2020, GBP/USD
Technical observation
On the daily chart above, GBP is rallying downwards towards a supportive line 1.2626. I expect either a rejection at the line or a break below it for a further decline towards the supportive zone 1.2226-1.2194. If you sold GBP within the resistance zone 1.3006-1.2970 after a bounce, remain short with your take profit at 1.2626 and stop loss at 1.3166. In case of a clear break below the line 1.2626 with a big red candle, continue short with this pair towards the supportive zone 1.2226-1.2194 after a correction to the just broken line. Bullish movements can only be anticipated in case of a clear break above 1.3006-1.2970.
Trade recommendation
We are short with our take profit at 1.2626.