Wait for a correction to sell GBP | 28 April 2022

Technical observation

GBP did not retrace to the resistance zone 1.3184-1.3208 as I had predicted yesterday, instead, it declined below the supportive level 1.2721 with a big red candle then continued downwards. My expectation is a correction to the level 1.2721 followed by a rejection at it to pick short positions with my take profit a 1.2099 and stop-loss at 1.2847. Should price clearly break below the level 1.2099, I expect it to descend further towards the lower supportive level marked at 1.1436 after a pullback to the broken line. On the daily chart above I can only recommend bullish positions in case of a break above the zone 1.3184-1.3208.

Trade recommendation

Wait for a correction to the level 1.2721 to sell GBP.