We are flat | 22 December 2022

Technical observation

GBP has been trading with an increasing bullish bias below the resistance level 1.2322, however, my expectation is a loss of this upwards movement followed by a correction to the zone 1.1689-1.1644; I expect price to bounce within the zone I have mentioned above followed by a momentum to the upper side. My advice, remain neutral and wait for a pullback to the zone 1.1689-1.1644 then buy a bounce within it with your take profit at 1.2322 and stop-loss at 1.1443. If there is a clear break above the level 1.2322, I expect the value of GBP to ascend further. On the chart above, I can only recommend short positions below the zone 1.1689-1.1644.

Trade recommendation

Remain neutral.