Wait for a pullback to the zone 1.1744-1.1714 | 25 January 2023

Technical observation

On the 4 hour chart above, price rose to the level resistance 1.2393 then bounced at it and since then it has been trading with an increasing bearish bias. This downwards movement is a correction to the supportive zone 1.1744-1.1714 where I expect a possible rejection of price followed by a momentum to the upper side. My advice, remain flat and wait for a pullback to the zone I mentioned earlier then buy a bounce within it with your take profit at 1.2393 and stop-loss at 1.1509. If there is a clear break above the level 1.2393, wait for a correction and a rejection of price at it before you continue long with this pair.

Trade recommendation

Remain neutral.