Wait for a correction to the zone 1.2278-1.2185 | 06 October 2022

Technical observation

Last week GBP rose with a big green candle and this week I expect it to rally further upwards and close green. Next week I expect a continuation of this upwards movement towards the resistance zone 1.2278-1.2185 and would recommend that you remain neutral and wait for a correction to the zone mentioned above then pick short positions within it after a rejection of price with your take profit at 1.360 and stop-loss at 1.2847. On the weekly chart above as long as price is sustained below the zone 1.2278-1.2185, I can only recommend short positions, a further surge to the lower side can be expected in case of a break below the level 1.0360.

Trade recommendation

Wait for a correction to the zone 1.2278-1.2185 to sell GBP.