Expecting a surge 1.2028 | 12 April 2022

Technical observation

On the weekly chart above price bounced within the resistance zone 1.3349-1.3298 and since then it has been trading with an increasing bearish bias; I expect a continuation of this downwards movement to the supportive level 1.2028. If you sold GBP within the zone 1.3349-1.3298 after a bounce, remain in the trade 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 red candle, I expect a further momentum towards 1.1415, on the other hand in case of a penetration above the zone 1.3349-1.3298, I anticipate a possible rally towards the upper resistance level 1.4239.

Trade recommendation

Remain bearish with your take profit at 1.2028.