Wait for a retracement to sell GBP | 04 May 2022

Technical observation

GBP is trading below the resistance level 1.2721 with an increasing bullish bias and my expectation is a continuation of this upwards movement to the level I have indicated above followed by a rejection at it to pick short positions with my take profit at 1.2099 and stop-loss at 1.2094. If price declines below the level 1.2099, I expect it to descend further towards the lower supportive level 1.1436 after a retracement to the broken line, on the other hand, a possible rally to the upper side can be expected in case of a clear breakout above the level 1.2721. Right now, remaining neutral with GBP is ideal than picking any positions.

Trade recommendation

Wait for a correction to 1.2721 to sell GBP.