We are neutral. | 13 October 2022

Technical observation

GBP is trading with an increasing bullish bias between the supportive level 1.0376 and the resistance zone 1.2225-1.2135, this upwards movement is a correction to the zone I have mentioned above and I expect a possible rejection of price within it to pick short positions. My advice remain neutral and wait for a pullback to the zone indicated above then sell a bounce within it with your take profit at 1.0376 and stop-loss at 1.2663. If there is a clear break below the level 1.0376 with a big red candle, I expect the value of GBP to plummet further to the lower side, on the chart above, I can only recommend bullish positions in case of a break above the zone 1.2225-1.2135.

Trade recommendation

Remain neutral.