Looking to sell within 1.2278-1.2186 | 18 January 2023

Technical observation

Just like EUR, the pair on the weekly chart above retraced to a resistance zone 1.2278-1.2186 then bounced within it and it is currently still trading with an increasing bullish bias within the same zone. However, I expect a loss of this bearish movement within the zone I have mentioned above followed by a rally to the lower side and my advice is, pick short positions now within the zone 1.2278-1.2186 with your take profit at 1.0368 and stop-loss at 1.2663. If there is a clear break below the level 1.0368, I expect the value of GBP to descend further, on the other hand, if there is a clear break above the zone 1.2278-1.2186, you can expect bullish movements of price.

Trade recommendation

Sell GBP now within 1.2278-1.2186 with your take profit at 1.0368.