we are flat | 08 August 2022

Technical observation

On the daily chart above, price declined to the supportive level 1.1815 and it was rejected at the same line; since then the value of GBP has been trading with an increasing bullish bias and I expect a further rally to the upper side, the anticipated upwards movement of price is a correction to the resistance zone 1.2630-1.2662 and I expect a bounce within the same zone to re-sell GBP with my take profit at 1.1815 and stop-loss at 1.2875. A further surge towards the supportive level 1.1406 can be expected in case of a clear break below the level 1.1815; on the other hand, you can expect bullish movements of price above the zone 1.2630-1.2662.

Trade recommendation

Remain flat.