We are bearish towards 1.2028 | 04 April 2022

Technical observation

On the weekly chart above, the previous candle went down following a rejection within the resistance zone 1.3349-1.3298 and this week I expect a continuation of this bearish movement towards the supportive level 1.2028. My advice, if you sold GBP within the zone mentioned above after a bounce, remain short with your take profit at 1.2028 and stop-loss at 1.3646. Should there be a clear break below the level 1.2028 with a big green candle, I expect a further momentum towards the supportive level 1.1415; on the other hand, if price penetrates above the zone 1.3349-1.3298 with a big green candle, I expect a surge towards 1.4239.

Trade recommendation

Remain short with your take profit at 1.2028.