Expecting a surge to 1.2020 | 22 April 2022

Technical observation

Since it bounced within the resistance zone 1.3418-1.3355, GBP has been trading with an increasing bullish bias and I expect a continuation of this downwards movement towards the supportive level 1.2020. If you sold this pair within the zone indicated above after a bounce, remain short with your take profit at 1.2020 and stop-loss at 1.3743. If price breaks below the level 1.2020, I expect it to descend further towards the lower support supportive level 1.1404, however, should the value of this pair rise above the zone 1.3418-1.3355 with a big green candle, I expect it to surge towards the resistance level 1.4636.

Trade recommendation

Remain short with your take profit at 1.2020.