Expecting a rally to 1.3966 | 21 January 2022

Technical observation

GBP retraced to the supportive zone 1.3593-1.3563 with a big red candle but could not break below it and as long as it remains above the same zone I expect price to rise steadily to the resistance level 1.3966. If you picked long positions within the zone 1.3593-1.363 after a bounce, remain in the trade with your take profit at 1.3966 and stop loss at 1.3456. In case of a clear breakout above the level 1.3966 with a big green candle, further momentum to the upper side can be expected after a correction to the broken line. I can only recommend short positions in case of a breakout below the zone 1.3593-1.3563.

Trade recommendation

Remain long with your take profit at 1.3966.