we are neutral | 22 December 2021

Technical observation

Last week GBP declined to the supportive level 1.3194 but still it could not break below it, currently price is trading with an increasing bullish bias between the level mentioned above and a resistance zone 1.3363-1.3352, I expect price to plummet to the zone 1.3363-1.3352 followed by a rejection within it to re-sell GBP with my take profit at 1.3194 and stop loss at 1.3428. In case price is not sustained below the zone but instead it clearly breaks above it with a big green candle, I expect it to ascend towards the resistance level 1.3496. However as long as it remains below the zone I can only recommend bearish positions for this pair.

Trade recommendation

Remain neutral.