Pick short positions within 1.2635-1.2591 | 27 May 2022

Technical observation

On the daily chart above price retraced to the resistance zone it established at 1.2635-1.2591 and currently it is trading within the same zone with an increasing bullish bias. My expectation is a loss of this upwards movement followed by a surge to the supportive level 1.2099. I would recommend that you sell a bounce within the zone I have mentioned above with your take profit at 1.2099 and stop loss at 1.2845. Should there be a clear break below the level 1.2099, I expect the value of GBP to plummet further towards the level 1.1436; however, if price clearly breaks above the zone 1.2635-1.2591, I expect a possible momentum to the upper side.

Trade recommendation

Sell GBP within 1.2635-1.2591 with your take profit at 1.2099.