Flat | 08 March 2022

Technical observation

GBP has been trading on a steady downtrend for some time now and recently price declined and broke below the supportive level 1.3183 with a big red candle it then pulled back slightly to the broken line before continuing further downwards. I anticipate a correction to the level 1.3183 however there is still a possibility of further bearish movements of price. My advice, remain flat with this pair and wait for a correction to the line 1.3183 to pick short positions with your take profit at 1.3085 and stop-loss at 1.3250. If GBP is not sustained below the level 1.3183 but clearly breaks above it with a big green candle, I expect it to retrace to the level 1.3434 and bounce at it before price declines towards 1.3183.

Trade recommendation

Remain flat.