Wait | 15 October 2021

Technical observation

This week GBP has been rallying towards the resistance zone 1.3661-1.3599 with an increasing bullish bias; currently price is trading within the same zone and I expect a loss of this upwards movement within the zone for a surge to the lower side, however, if the breakout below the zone mentioned above was false then there is a possibility of another clear break above the zone 1.3661-1.3599, if this is the case, wait for a correction to the broken zone and a rejection within it before you pick long positions. Right now I would advise you wait for a second correction to the zone 1.3661-1.3599 and sell a bounce within it with your take profit at 1.2565.

Trade recommendation

Remain flat