we are flat | 05 May 2022

Technical observation

GBP rose above the resistance zone 1.2613-1.2601 with a big green candle and right now it is trading slightly above the same zone. I expect a correction to the zone mentioned above followed by a rejection within it to pick long positions with my take profit at 1.2766 and stop-loss at 1.2530 , it is however advisable that you pick long positions after a second retracement to the broken zone just ensure the beak above it is not a false breakout. In case of a penetration above the level 1.2766, I expect price to ascend further towards the upper resistance level 1.2918. Right now I would advise that you remain flat with the pair above.

Trade recommendation

Remain flat.