Wait | 25 February 2022

Technical observation

Just like EUR, GBP broke below a supportive zone 1.3511-1.3510 then declined steadily up to the supportive level 1.3356, at this level price sent a long tail below it but closed bullish above the same line. I expect a continuation of this upwards movement to the zone I have mentioned above followed by a rejection within it to pick short positions with my take profit at the level 1.3356 and stop-loss at 1.3573. In case of a clear breakout below the supportive level 1.3356 with a big red candle, I anticipate the price to plummet towards the lower supportive level 1.3183 after a retracement to the broken line. I can only recommend short positions for the pair above.

Trade recommendation

Remain flat.