Remain flat | 20 May 2022

Technical observation

Just like EUR, this week GBP opened bullish and I expect it to close the same. Next week I anticipate further upwards movement of price towards the resistance zone 1.3355-1.3418 and I would advise that you remain neutral and wait for a pullback to the zone mentioned above then pick short within it after a bounce with your take profit at 1.2020 and stop-loss at 1.3751. In case of penetration above the zone I mentioned earlier, I expect a surge to the resistance level 1.4636 after a correction and rejection within the same zone .On the weekly chart above, further bearish movements towards the level 1.1404 can be expected in case of a break below 1.2020.

Trade recommendation

Remain neutral.