Expecting a momentum towards 1.4182 | 22 October 2021

Technical observation

GBP retraced to a supportive zone it established at 1.3572-1.3515 but it could not break below it, price was sustained above the zone and as long as it remains above it you can only expect a surge to the upper side. If you picked long positions within the zone I have mentioned above after a bounce, remain in the trade with your take profit at 1.4182 and stop loss at 1.3218. In case of a clear breakout above the resistance level 1.4182 with a big green candle, I expect a retracement to it followed by a further surge to the upper side. On the other hand in case of a clear break below the zone 1.3572-1.3515 with a big red candle, I expect the value of the pair to descend to the supportive level 1.2565.

Trade recommendation

Remain long with your take profit at 1.4182.