Remain flat | 06 February 2023

Technical observation

Just like EUR, GBP is also retracing to a supportive zone it established at 1.1744-1.1714 and I expect a decline to this zone followed by either a rejection within it or a clear break below it with a big red candle. In case of a bounce within the zone mentioned above, pick bullish positions within it with your take profit at 1.2424 and stop-loss at 1.1477, on the other hand if there is a clear break below the zone 1.1744-1.1714, wait for a correction and rejection within it before you pick short positions towards the supportive level 1.105 or lower to the level 1.0363. A further surge to the upper side can be expected in case of a clear break above the level 1.2424.

Trade recommendation

Remain flat.