Sell GBP within 1.3349-1.3298 | 23 March 2022

Technical observation

Last week GBP retraced towards the zone 1.3349-1.3298 but could not reach it and this week price is still trading with an increasing bullish bias; I expect a loss of this upwards movement within the zone mentioned above followed by a surge to the lower side. My advice, sell a bounce within the zone 1.3349-1.3298 with your take profit at 1.2028 and stop-loss at 1.3646, if price breaks below the level 1.2028 with a big red candle, I expect the value of this pair to plummet towards 1.1415. On the weekly chart above, as long as price is sustained below the zone 1.3349-1.3298, I can only recommend short positions.

Trade recommendation

Sell GBP within 1.3349-1.3298 with your take profit at 1.2028.