we are flat | 25 August 2022

Technical observation

GBP is trading with an increasing bullish bias above the supportive level 1.1758, this upwards movement is a correction to the zone price established at 1.2070-1.2054 and I expect a bounce within it to pick short positions with my take profit at 1.1758 and stop-loss at 1.2142. If there is a clear break below the level 1.1758 with a big red candle, I expect the value of the pair above to descend further after a pullback to the broken line. As long as GBP is sustained below the zone indicated above, I expect it to plummet further downwards; a momentum to the upper side can only be expected in case of a clear break above the same zone.

Trade recommendation

Remain flat.