Wait for correction to the zone 1.1689-1.1644 to buy GBP. | 07 December 2022

Technical observation

GBP is trading with an increasing bearish bias below a resistance level 1.2322 and as long as it does not break above this level, I expect a possible rally to the supportive zone 1.1689-1.1644. My advice, remain flat and wait for a pullback to the zone indicated above, then buy a bounce within it with your take profit at 1.2322 and stop-loss at 1.1410. In case price clearly penetrates above the level 1.2322, I expect it to ascend further after a retracement and a bounce at the broken line. On the 4 hour chart above, as long as the value of GBP is sustained above the zone 1.1689-1.1644, I can only recommend bullish positions.

Trade recommendation

Wait for correction to the zone 1.1689-1.1644 to buy GBP.