Pick short positions within 1.21861.2165 | 01 August 2022

Technical observation

GBP pulled back to the resistance zone it established at 1.2186-1.2165 but could not break above it and currently it is trading within the same zone with an increasing bullish bias. My expectation is a loss of this upwards movement within the zone I have indicated above followed by bearish movements of price. My advice, pick short positions now within the zone 1.21861.2165 with your take profit at 1.1775 and stop-loss at 1.2318. If this take profit is hit and there is a penetration below it with a big red candle, you can expect a further surge to the lower side after a correction of price to the broken line and a rejection at it.

Trade recommendation

Sell GBP now with your take profit at 1.1775.