Pick long positions within the zone 1.3619-1.3607 | 18 January 2022

Technical observation

Just like EUR, GBP is also trading with an increasing bearish bias above the supportive zone it established at 1.3619-1.3607, this downwards movement is a retracement to the zone mentioned above and I expect a rejection within it followed by a momentum to the upper side. My advice, remain flat temporarily and wait for a correction to the zone 1.3619-1.3607 then buy a bounce within it with your take profit at the resistance level 1.3833 and stop loss at 1.3351. Should there be a clear penetration above the key level 1.3833 with a big green candle, I expect the value of this pair to plummet further towards 1.4003.

Trade recommendation

Wait for a correction to the zone 1.3619-1.3607 to buy GBP.