Anticipating a pullback to the zone 1.1744-1.1714 | 16 January 2023

Technical observation

GBP is trading with an increasing bullish bias slightly below the resistance level 1.2393 and I expect a rise to the same level followed by a rejection of price at it. I also expect a possible pullback to the supportive zone price established at 1.1744-1.1714 after a bounce at the level 1.2393 and I recommend that you remain neutral and wait for a pullback to the zone I have mentioned above then buy a bounce within it with your take profit at 1.1744-1.1714. If there is a clear break above the level 1.2393, wait for a correction to it before you continue long with this pair. As it is on the chart above, I can only recommend short positions below the zone 1.1744-1.1714.

Trade recommendation

Wait for a correction to the zone 1.1744-1.1714 to buy GBP.