Expecting a rally to 1.2072 | 01 June 2022

Technical observation

GBP pulled back to a resistance zone it established at 1.2672-1.2636 but could not break above it, however, price bounced within the same zone and yesterday it traded with an increasing bearish bias. Today I expect a continuation of this downwards movement towards the supportive level 1.2072 followed by either a clear breakout below it or a bounce at it. If you picked short positions within the zone I have indicated above, remain in the trade with your take profit at 1.2072 and stop-loss at 1.2849. On the daily chart above, I can only recommend bullish positions in case of a clear break above the zone 1.2672-1.2636.

Trade recommendation

Remain short with your take profit at 1.2072.