Wait for a correction to the zone 1.2278-1.2186 | 01 February 2023

Technical observation

On the weekly chart above, price rose above the zone 1.2278-1.2186 with a big green candle and last week it traded with an increasing bearish bias towards the just broken zone, this week, the pair opened bearish and my expectation is a loss of this downwards movement within the same zone followed by a rally to the upper side. However, I recommend that you wait for a second correction to the zone 1.2278-1.2186 to pick bullish positions with your take profit at 1.4236 and stop-loss at 1.1777. If there is a clear break above the level 1.4236, I expect price to ascend further towards the upper supportive level 1.6725 or higher.

Trade recommendation

Wait for a correction to the zone 1.2278-1.2186 to buy GBP.