Expecting a surge towards 1.0368 | 04 January 2023

Technical observation

Since it bounced within the zone resistance zone 1.2278-1.2186, GBP has been trading with an increasing bearish bias for the past four consecutive weeks and as long as price remains below the zone in have mentioned above, I expect it to plummet even further. In case you picked short positions within the zone indicated above after a bounce, I recommend that you remain in the trade with your take profit at 1.0368 and stop-loss at 1.2670. Should there be a clear break below the level 1.0368, you can expect the value of GBP to descend even further after a correction and a rejection of price at the broken line.

Trade recommendation

Remain short with your take profit at 1.0368.