Wait for a retracement to the zone 1.2656-1.2617 | 19 July 2022

Technical observation

Yesterday GBP rose with a big green candle on the daily chart above and as long as it is sustained above the supportive level 1.1820 I expect a continuation of this upwards movement to the resistance zone 1.2656-1.2617. My advice, remain neutral and wait for a pullback to the zone I have indicated above then pick short positions within it after a bounce with your take profit at 1.1820 and stop-loss at 1.2965. In case of a clear breakout below the level 1.1820, I expect a further surge towards the lower supportive level 1.1412. On the other hand if there is a clear break above the zone 1.2656-1.2617, I expect price to rise towards the level 1.3301.

Trade recommendation

Remain flat.