Wait for a correction to the zone 1.3563-1.3551 | 04 February 2022

Technical observation

GBP rose above a zone 1.3563-1.3551 with a big green candle; price then retraced to the just broken zone and could not break below it and as long as this pair remains above this zone I can only recommend bullish positions for the pair above. Right now the value of this pair is trading with an increasing bearish bias and I expect a continuation of this downwards movement to the zone mentioned above followed by a rejection within it to pick long positions with my take profit at 1.3700 and stop loss at 1.3493. A further rally to the upper side can be expected in case of a clear penetration above the resistance level 1.3700.

Trade recommendation

Wait for a correction to the zone 1.3563-1.3551 to buy GBP.