12 Oktober 2020, GBP/USD
Technical observation
On the chart above, price penetrated above a resistance zone 1.3006-1.2970 with a big green candle and is still trading with an increasing bullish bias. My expectation is a correction to the just broken zone followed by a clear bounce within it for bullish price rally towards the resistance line 1.3386. My advice, wait for a correction to the zone 1.3006-1.2970 and a rejection within it to buy GBP with your take profit at 1.3386 and stop loss at 1.2809. In case price breaks below the zone 1.3006-.12970 and is contained below it, then the penetration above the zone was false and you can anticipate bearish movements.
Trade recommendation
Wait for a correction to 1.3006-1.2970 to buy GBP with your take profit at 1.3386.