expecting a correction to 1.2656-1.2617 | 06 July 2022

Technical observation

Just like EUR, GBP is trading with an increasing bearish bias above a supportive level it established at 1.1994 and my expectation is either a rejection of this downwards movement at the line or a clear breakout below it with a big red candle. If you are currently holding short positions with the pair above, I would recommend that you pick your profits at the level 1.1994. However, if you are neutral, remain so and wait for another correction to the resistance zone 1.2656-1.2617 or a clear break below the level 1.1994 to sell GBP. As it is on the chart above, I can only recommend bullish positions in case of a clear break above the zone 1.2656-1.2617.

Trade recommendation

Remain short with your take profit at 1.1994.