We are neutral | 24 January 2023

Technical observation

Last week GBP rose above the zone 1.2278-1.2186 and this week price opened bearish above the same zone. This downwards movement is a pullback to the zone indicated above and I expect a rejection within it followed by a momentum to the upper side. My advice is, remain flat and wait for a second pullback to the zone 1.2278-1.2186 then buy a bounce within it with your take profit at 1.4236 and stop-loss at 1.1777. In case of a clear break above the level 1.4236, i expect GBP to gain momentum towards the resistance level 1.6725 or higher. As long as price is sustained below the zone 1.2278-1.2186 I can only recommend bullish positions

Trade recommendation

Remain flat.