Wait | 14 December 2022

Technical observation

Since it bounced within the supportive zone 1.1690-1.1623, GBP has been rallying steadily to the upper side and currently it is trading just below the level 1.265. I expect a continuation of this upwards movement to the same level followed by a possible rejection of price at it, My advice is, remain flat and wait for a rejection at the level 1.2650 followed by a correction to the zone 1.1690-1.1623 to buy GBP with your take profit at 1.2650 and stop-loss at 1.1155. If there is a clear break above the 1.2650 with a big green candle, I expect the value of GBP to plummet further towards the resistance level 1.3610 or higher.

Trade recommendation

Remain neutral.