Sterling has rejected the trend line resistance 1.3100 and has formed a 4h bearish pin bar and small bearish engulfing signal. It's likely that price will head back to trend line support at around 1.2950-1.3000 at which point we can take profits on reversal and look for opportunities to go LONG, with a possibility that price will break through the resistance this time. Price is really running out of space to move and so a breakout is imminent.
Trade closed: target reached:
Trade ran perfectly, but I didn't take a long position. Thanks for your comments!