We are neutral. | 08 November 2022

Technical observation

GBP is retracing to the resistance zone it established at 1.2185-1.2062 and I expect a possible rejection within this zone followed by a surge to the lower side. As it is on the weekly chart above, I recommend that you remain neutral and wait for a pullback to the zone mentioned above then pick short positions within it after a bounce with your take profit at 1.0368 and stop-loss at 1.2670. Continue short after a clear break below the level 1.0368 with a big red candle, but if there is a clear break above the zone 1.2185-1.2062, wait for a pullback to it and a bounce before you pick bullish positions towards the resistance level 1.4236.

Trade recommendation

Remain neutral.