We are neutral | 17 January 2023

Technical observation

GBP is trading with an increasing bearish bias between the zone 1.0410-1.0367 and a resistance level 1.2650, my expectation is a continuation of this downwards movement to the zone I have mentioned above followed by a rejection within. I recommend that you remain neutral and wait for a pullback to the zone 1.0410-1.0367 then buy a bounce within it with your take profit at 1.2650 and stop-loss at 1.1150. In case of a clear break above the level 1.2650, I expect price to ascend further towards the level 1.3610 or even higher to 1.4376, on the other hand, if there is a clear break below the zone 1.0410-1.0367, I expect bearish movements towards the level 1.0363.

Trade recommendation

Remain flat.