We are flat | 24 January 2022

Technical observation

On the daily chart above, GBP declined with a big red candle breaking below the supportive zone 1.3593-1.3563; today I expect either a further surge to the lower side or a loss of this bearish movement followed by a correction to the zone mentioned above. In case the value of the pair above plummets further downwards, remain flat and wait for a correction to the zone 1.3593-1.3563 to sell GBP. On the other hand, should there be no momentum to the lower side but a correction to the zone mentioned above, I would advise that you remain neutral and only pick short positions after a second retracement to the zone 1.3593-1.3563.

Trade recommendation

Remain neutral.