We are long within the zone 1.3435-1.3354 | 19 January 2022

Technical observation

Since the beginning of the week the value of the pair on the chart above has been trading with an increasing bearish bias, this bearish movement is a pullback to the zone 1.3435-1.3354 that this pair previously rose above with a big green candle. I expect a rally to the same zone followed by a rejection within it to buy GBP with my take profit at 1.4239 and stop loss at 1.3053. Should there be a clear break above the level 1.4239, I anticipate further momentum of price to the upper resistance level 1.5535. As long as the value of this pair remains above the zone 1.3435-1.3354, I can only recommend picking long positions.

Trade recommendation

Buy GBP within the zone 1.3435-1.3354 with your take profit at 1.4239.