Wait | 28 December 2022

Technical observation

GBP rose above the zone 1.1690-1.1623 with a big green candle then pulled back to it before gaining an upwards momentum. Currently price is trading with an increasing bearish bias between the zone I have mentioned above and a resistance level 1.2650 and my expectation is a continuation of this downwards movement towards the zone indicated above followed by a rejection of price within it. My advice, remain flat and wait for a pullback to the supportive zone 1.1690-1.1623, then buy a bounce within it with your take profit at 1.265 and stop-loss at 1.1155. If there is a clear break above the level 1.2650, I expect price to ascend further towards 1.3610.

Trade recommendation

Remain neutral.