Remain short towards 1.0363 | 07 November 2022

Technical observation

Since it bounced within the resistance zone 1.1690-1.1623, GBP has been trading with an increasing bullish bias and as long as it is sustained below this zone I expect price to plummet further to the lower side. If you sold this pair within the zone indicated above after a bounce, remain in the trade with your take profit at 1.0363 and stop-loss at 1.2046. In case of a penetration below the level 1.0363 with a big red candle, I expect the value of GBP to rally further to the lower side however, should there be a clear break above the zone 1.1690-1.1623, I expect price to ascend towards the resistance level 1.2650 after a correction to the broken zone.

Trade recommendation

Remain short with your take profit at 1.0363.