Remain neutral. | 16 August 2022

Technical observation

GBP declined to the supportive level 1.1758 but could not break below it; instead it bounced at the same line and for some time now price has been trading with an increasing bullish bias. This upwards movement is a retracement to the resistance zone 1.2666-1.2623 and I expect a rise in price to the same zone followed by a bounce within it to pick short positions with my take profit at 1.1758 and stop-loss at 1.2841, if price clearly breaks below the level 1.1758, I expect it to decline further towards the supportive level 1.1407. As it is on the daily chart above, I can only recommend bullish positions in case of a clear break above the zone 1.2666-1.2623.

Trade recommendation

Remain neutral.