We are neutral | 03 February 2022

Technical observation

GBP ascended above the zone 1.3524-1.3514 then rose steadily towards the level 1.3643 but could not reach it, price is currently trading with an increasing bearish bias and I expect a continuation of this downwards movement to the supportive zone 1.3524-1.3514 followed by a bounce within it to pick long positions with my take profit at 1.3643 and stop loss at 1.3459. Should there be a clear breakout above the level 1.3643 with a big green candle, I expect further upwards movements of price after a retracement and a bounce above the broken line. As it is on the chart above, only bullish positions look ideal and can be recommended.

Trade recommendation

Wait for a correction to the zone 1.3524-1.3514 to buy GBP.