We're flat | 11 May 2021

Technical observation

GBP is trading with an increasing bullish momentum between a supportive level 1.4001 and a resistance level 1.4236. However, I expect bearish movement to continue to the supportive level mentioned above followed by a bounce at it to pick long positions. Right now remaining neutral with this pair is ideal than picking any position. If price breaks above the level 1.4236 with a big green candle wait for a correction to it and a bounce before you can continue further upwards. In case there is a break below the level 1.4001 with a big red candle, wait for a correction to it and a bounce to confirm price is sustained below the level before you sell GBP.

Trade recommendation

Remain neutral.