Re-sell GBP within 1.2155-1.2175 | 20 July 2022

Technical observation

On the 4 hour chart above price is trading with an increasing bullish bias below a resistance zone it established at 1.2155-1.2175 and I expect a continuation of this upwards movement to the same zone followed by a rejection within it to re-sell GBP. I would recommend that you remain neutral temporarily and wait for a correction to the zone mentioned above then pick short positions within it after a bounce with your take profit at 1.1756 and stop-loss at 1.2291. You can expect the value of GBP to plummet further in case of a clear breakout below the level 1.1756. I can only recommend bullish positions in case of a break above 1.2155-1.2175.

Trade recommendation

Wait for a correction to the zone 1.2155-1.2175 to sell GBP.