Wait | 28 March 2023

Technical observation

GBP is retracing to the resistance zone it established at 1.2401-1.2308 and I expect a loss of this upwards movement within the same zone followed by a momentum to the lower side. My advice, remain neutral temporarily and sell a bounce within the zone I have indicated above with your take profit at level 1.0368 and stop-loss at 1.2863. If price breaks below the level 1.0368, I expect it to descend further after a pullback to the broken line; on the other hand, in case of a break above the zone 1.2401-1.2308 with a big green candle, I expect possible bullish momentum towards the resistance levels 1.4236 and 1.6725 or higher.

Trade recommendation

Remain neutral temporarily.