We are neutral. | 09 September 2022

Technical observation

With the past three consecutive candles GBP has been trading with an increasing bullish bias and I expect a further rally to the upper side towards the resistance zone 1.1841-1.1855, the anticipated upward movements is a correction to the zone indicated above and I expect a rejection of price within it to pick short positions with my take profit at 1.1430 and stop-loss at 1.1962. If there is a clear break below the level 1.1430 , I expect the value of GBP to plummet further, on the other hand should there be a clear break above the zone 1.1841-1.1855, I expect price to ascend towards the resistance level 1.2317 or higher to 1.2652.

Trade recommendation

Wait for a retracement to the zone 1.1841-1.1855 to sell GBP.