29 Juni 2021, GBP/USD
Technical observation
GBP retraced to a resistance zone it established at 1.4012-1.4003 but could not break above it, it bounced below the zone then rallied towards the supportive level 1.3799. Currently it is trading with an increasing bullish bias between the key level 1.3799 and the resistance zone I have mentioned above. I expect either a decline to the line 1.3799 followed by a clear penetration below it with a big red candle, or a rise to the zone 1.4012-1.4003 followed by a bounce within it to re-sell GBP. If you are currently neutral with this pair, remain so and wait for either another correction to the zone 1.4012-1.4003 to sell GBP or a break below the level 1.3799.
Trade recommendation
Remain flat