Wait for a correction to the level 1.2635 to sell GBP | 16 May 2022

Technical observation

GBP is trading with an increasing bullish bias above the supportive level 1.2099, I expect a continuation of this upwards movement to the resistance level 1.2635 followed by a rejection at it to pick short positions with my take profit at 1.2099 and stop-loss at 1.2841. If price clearly penetrates below the level 1.2099 with a big red candle, I expect it to descend further towards the lower supportive level marked at 1.1436, on the other hand, should there be a clear break above the level 1.2635 I expect a correction and a rejection of price at it followed by possible bullish movements of price towards the upper resistance zone 1.3184-1.3208.

Trade recommendation

Wait for a correction to the level 1.2635 to sell GBP.