we are flat | 11 October 2022

Technical observation

On the daily chart above price is trading with an increasing bearish bias between the supportive level 1.0370 and a resistance zone 1.1757-1.1683 and my expectation is either a correction to the zone indicated above or a surge to the supportive level 1.0370. If price retraces to the zone I mentioned above, sell a bounce within it with your take profit at 1.0370 and stop-loss at 1.2250, in case of a clear penetration below the level 1.0370 with a big red candle, I expect the value of GBP to plummet further to the lower side after a correction to the broken line. As long as price is sustained below the zone 1.1757-1.1683, I can only recommend short positions.

Trade recommendation

Remain flat.