Sell a bounce within 1.3610-1.3881 | 09 February 2022

Technical observation

GBP did not decline as I had predicted yesterday but instead it rose towards the resistance zone 1.3610-1.3882, this upwards movement is a temporary retracement to the zone mentioned above and I expect a rejection of price within it followed by a momentum to the lower side. If you are currently neutral with this pair, remain flat and wait for a bounce within the zone 1.3610-1.3881 to pick short positions with your take profit at 1.3157 and stop loss at 1.3746. Should there be a clear breakout below the level 1.3157 with a big red candle, I anticipate a further surge towards the lower supportive level marked at 1.2688.

Trade recommendation

Sell a bounce within 1.3610-1.3881 with your take profit at 1.3157.