We are neutral | 11 March 2022

Technical observation

On the chart above price did not retrace to the resistance level 1.3271 as I had predicted, instead, it declined up to the supportive level 1.3081 but could not break below it and as long as price is above the level, I expect a correction to the line 1.3271 followed by a rejection at it to sell GBP with my take profit at 1.3081 and stop loss at 1.3326. If price breaks below the level 1.3081 with a big red candle, there is a possibility of a further momentum to the lower side, however, In case of a break above the level 1.3271 with a big green candle, I expect a correction to it followed by upwards movement of price towards the resistance zone 1.3445-1.3435.

Trade recommendation

Wait for a correction to the level 1.3271 to sell GBP