we are neutral | 29 April 2022

Technical observation

Just like EUR, yesterday GBP rallied with an increasing bearish momentum below a level 1.2721 and right now price is trading between the same line and a supportive level 1.2099. My expectation is a correction to the resistance level 1.2721 followed by a rejection at it to pick short positions with my take profit at 1.2099 and stop loss at 1.2921. Should there be a clear break below level 1.2099, a further momentum towards the line 1.1436 can be expect after a pullback to the broken line. On the chart above, I can only recommend bullish positions in case of a clear breakout above the resistance zone 1.3184-1.3208.

Trade recommendation

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