Wait for a correction to sell GBP | 31 May 2022

Technical observation

For the past two weeks GBP has been trading with an increasing bullish momentum above the supportive level 1.2020 and this week I expect price to continue to the upper side. The anticipated upwards movement is a correction to the resistance zone 1.3355- 1.3418 and I expect a rejection of price within it to pick short positions with my take profit at 1.2020 and stop-loss at 1.3749. If GBP is not sustained below the zone mentioned above but clearly breaks above it with a big green candle, I expect a further momentum towards the resistance level 1.4636, and on the other hand in case of a break below 1.2020, I expect a surge in price towards 1.1404.

Trade recommendation

Remain flat.