We're short | 18 October 2022

Technical observation

On the chart above price is trading with an increasing bearish bias below a resistance zone 1.1460-1.1427 and as long as GBP is sustained below this zone, I expect a further surge towards the supportive level 1.0890. If you are holding short positions with the pair above, remain in the trade with your take profit at 1.0890 and stop-loss at 1.1657. In case of a clear break below the level 1.0890 with a big red candle, I expect the value of GBP to plummet further towards the lower supportive level 1.0360. On the chart above, I can only recommend bullish positions in case of a clear penetration above the zone 1.1460-1.1427.

Trade recommendation

Remain short with your take profit at 1.0890.