Remain neutral temporarily. | 19 October 2022

Technical observation

Just like EUR, GBP is opened bullish this week and I expect it to rally further to the upper side throughout the week, the anticipated upwards movement of price is a correction to the resistance zone 1.1654-1.1746 and I expect a possible rejection within it. Right now as it is on the weekly chart above, I would recommend that you remain neutral temporarily and wait for a retracement to the zone I have indicated above then sell a bounce within it with your take profit at the level 1.0360 and stop-loss at 1.2301. If there is a clear break below the level 1.0360, continue short after a correction and a rejection of price at it.

Trade recommendation

Remain neutral temporarily.