Wait for a second correction to the zone 1.1472-1.1427 | 26 October 2022

Technical observation

The pair on the 4 hour chart above rose above a resistance zone it established at 1.1472-1.1427 and it is currently trading slightly above it with an increasing bullish bias. Despite this upwards movement, I expect a correction to the just broken zone followed by a rejection within it to pick long positions, however, I recommend only placing a buy order after a second correction and rejection of price within the zone I have indicated above. In case GBP is not sustained above the zone 1.1472-1.1427 but clearly breaks below it with a big red candle, you can anticipate possible bearish movements of price towards the supportive level 1.0888.

Trade recommendation

Wait for a second correction to the zone 1.1472-1.1427 to buy GBP.