Remain short with your take profit at 1.0368. | 07 March 2023

Technical observation

Since it bounced within the resistance zone 1.2401-1.2308, GBP has been trading with an increasing bearish bias and as long as it is sustained below the zone I have mentioned above, I expect it to decline even further. If you picked short positions within the zone indicated above after a bounce, I recommend that you remain in the trade with your take profit at 1.0368 and stop-loss at 1.2866. If price clearly penetrates below the level 1.0368 with a big red candle, I expect the value of this pair to descend further after a correction to the broken line. On the chart above, I can only recommend bullish positions above the zone 1.2401-1.2308.

Trade recommendation

Remain short with your take profit at 1.0368.