We are neutral. | 06 December 2022

Technical observation

Last week GBP rose above the zone 1.2186-1.2099 and this week it opened bearish above the same zone and my expectation is either a rejection of price within the zone mentioned above or a clear break below it. In case of a bounce within the zone, I recommend that you remain neutral and wait for a second pullback to it before you pick bullish positions with your take profit at 1.4236 and stop-loss at 1.1500 and if price is not sustained above the zone 1.2186-1.2099 but clearly breaks below it, wait for a correction and a rejection within it before you pick short positions towards the supportive level 1.0368 with your stop-loss at 1.2663.

Trade recommendation

Remain neutral.