Remain neutral temporarily. | 23 March 2023

Technical observation

GBP is trading with an increasing bullish bias below the resistance zone 1.2365-1.2416 and I expect a rally to the same zone followed by a bounce within it. My advice, remain neutral temporarily and pick short positions within the zone 1.2365-1.2416 with your take profit at 1.1484 and stop-loss at 1.2834. If there is a clear break below the level 1.1484 with a big red candle, wait for a correction to the just broken level and a rejection at it before you continue short towards the level 1.0363 or lower, on the other hand, if there is a clear break above the zone 1.2365-1.2416, I expect a momentum towards the resistance level 1.3610 or higher to 1.4376.

Trade recommendation

Remain neutral temporarily.