Wait for a correction to sell GBP | 25 May 2022

Technical observation

GBP has been trading with an increasing bullish momentum for two consecutive weeks now and my expectation is a continuation of this upwards movement of price to the resistance zone it established at 1.3418-1.3355 followed by a rejection within it to pick short positions with my take profit at 1.2020 and stop-loss at 1.3743. Should there be a clear break below the supportive level 1.2020 with a big red candle, I expect the value of the pair above to plummet towards the key level 1.1404; on the other hand, if price clearly penetrates above the zone 1.3418-1.3355, I expect it to ascend towards the resistance level marked at 1.1436.

Trade recommendation

Wait for a pullback to the zone 1.3418-1.3355 to sell GBP.