Buy within 1.2209-1.2173 | 22 May 2020

Technical observation

GBP did not bounce within the zone 1.2209-1.2173 instead, it traded with an increasing bearish momentum and is still rallying within the zone. I expect a loss of this bearish rally for possible bullish movements towards the line 1.2746 followed by a clear breakout above it. My advice, buy a bounce within the zone 1.2209-1.2173 with your take profit at 1.2746 and stop loss at 1.2003. In case there is a clear penetration below the zone 1.2209-1.2173 with a big red candle, wait for a correction to the just broken zone and a bounce within it to confirm possible bearish movements of price before you pick short positions.

Trade recommendation

Pick long positions within 1.2209-1.2173 with your take profit at 1.2746.