Remain neutral temporarily. | 22 April 2020

Technical observation

GBP is approaching the supportive zone 1.2209-1.2173. I expect a rejection of this bearish price movement within the zone followed by a surge to the upper side. Remain neutral temporarily and wait for a bounce within the above-mentioned zone to buy GBP with your take profit at 1.2746 and stop loss at 1.1934. If this take profit is hit and there is a clear breakout above it with a big green candle, further upwards price movements can be expected. However, should there be a clear penetration below the supportive zone 1.2209-1.2173 with a big red candle, price could plummet towards the level at 1.1468.

Trade recommendation

Remain neutral temporarily.