Expecting a rally to 1.0886 | 20 October 2022

Technical observation

Since it bounced within the resistance zone 1.1393-1.1360, GBP has been trading with an increasing bearish momentum and as long as it is contained below the zone I have mentioned above, I expect a further surge to the lower side. If you picked short positions within the zone indicated above after a bounce, I would recommend that you remain in the trade with your take profit at 1.0886 and stop-loss at 1.1569, should there be a clear break below the level 1.0886, you can expect the value of GBP to plummet further towards the supportive level 1.0361. On the chart above, I can only recommend bullish positions above the zone 1.1393-1.1360.

Trade recommendation

Remain short with your take profit at 1.0886.