Expecting a pullback to the zone 1.1841-1.1855 | 07 September 2022

Technical observation

Just like EUR, GBP is also trading with an increasing bearish momentum slightly above a supportive level 1.1468 and if price declines to this level, I expect it to either bounce at it or clearly break below it with a big red candle. In case of a bounce at the level 1.1468, wait for a pullback to the resistance zone 1.1841-1.1855, then sell a bounce within it with your take profit at 1.1468 and stop-loss at 1.1943, and should there be a clear below the level 1.1468, you can expect the value of GBP to plummet after a correction and a rejection of price at the broken line. As it is on the 4 hour chart above, I can only recommend bullish positions in case of a break above the zone 1.1841-1.1855.

Trade recommendation

Remain neutral.