Remain flat. | 18 July 2022

Technical observation

Just like EUR, GBP is trading with an increasing bullish bias above a supportive level it established at 1.1775. This upwards movement is a correction to the resistance zone 1.2300-1.2318 and I expect a rise to the zone followed by a bounce within it to pick short positions with my take profit at 1.1775 and stop-loss at 1.2428. If there is a clear break below the level 1.1775, I expect the value of the pair above to descend further after a pullback to the broken line, on the other hand, should there be a clear break above the zone I mentioned earlier with a big green candle you can anticipate a surge towards the level 1.2658.

Trade recommendation

Remain flat.