Pick short positions within the zone 1.2278-1.2186 | 20 January 2023

Technical observation

The pair above pulled back to the resistance zone it established at 1.2278-1.2186 and this week it rose slightly above the same zone and I expect price to close bullish. Next week I expect a surge to the lower side and I recommend that you pick short positions within the zone I have mentioned above with your take profit at 1.0368 and stop-loss at 1.2740. In case price clearly breaks above the zone 1.2278-1.2186, wait for a second retracement to the broken zone and a bounce within it before you pick bullish positions. On your way upwards the key levels to look for include 1.4236, and the resistance zone 1.6853-1.6725.

Trade recommendation

Pick short positions within the zone 1.2278-1.2186 with your take profit at 1.0368.