Sell GBP within the zone 1.2401-1.2308 | 24 March 2023

Technical observation

This week GBP retraced to the resistance zone it established at 1.2401-1.2308 and I expect a rejection within this zone followed by a possible rally to the lower side. I recommend that you pick short positions within the zone I have mentioned above with your take profit at the supportive level 1.0368 and stop-loss at 1.2843. If price clearly penetrates below the level 1.0368 with a big red candle, wait for a correction to the broken line before you continue short with GBP, on the other hand, in case of a clear break above the zone 1.2401-1.2308, I expect the price to ascend towards the resistance level 1.4236 or higher.

Trade recommendation

Sell GBP within the zone 1.2401-1.2308 with your take profit at 1.0368.