Wait for a correction to sell GBP | 12 August 2022

Technical observation

GBP continues to trade with an increasing bullish bias between the supportive level 1.1410 and the resistance zone 1.2579-1.2623, this upwards movement is a correction to the zone I have mentioned above and I expect price to ascend and bounce within it. Right now as it is on the weekly chart above, I would advise that you remain flat and wait for a correction to the zone indicated above then sell a bounce within it with your take profit at 1.1410 and stop-loss at 1.3036. A further rally to the lower side can be expected in case of a clear break below the level 1.1410, however, in case of a clear break above the zone 1.2579-1.2623, I expect price to surge towards 1.3680.

Trade recommendation

Wait for a correction to the zone 1.2579-1.2623 to sell GBP.