Remain flat | 06 January 2023

Technical observation

On the 4 hour chart above, GBP has been trading with an increasing bearish bias for some time now and today I expect a continuation of this downwards momentum. The anticipated surge to the lower side is a correction to the supportive zone 1.1689-1.1644 and I expect a rejection of price within the same zone followed by a rally to the upper side. My advice, remain neutral 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 1.1442. On the chart above, as long as price is sustained above the zone 1.1689-1.1644 I can only recommend bullish positions.

Trade recommendation

Remain flat.