Wait | 22 November 2021

Technical observation

On the hourly chart above, price is trading with an increasing bearish bias between a supportive zone it established at 1.3415-1.3408 and a resistance level 1.3509. This bearish movement is a retracement to the zone mentioned above and I expect a continued decline to then same zone followed by a rejection within it to buy GBP with my take profit at 1.3509 and stop loss at 1.3377. In case price is not contained above the zone 1.3415-1.3408 but instead it penetrates below it with a big red candle, I expect a possible bearish movement towards 1.3345 after a correction to the broken zone and a bounce within the zone.

Trade recommendation

Remain flat.