Expecting a rally towards 1.1688 | 25 May 2023

Technical observation

GBP is trading with an increasing bearish bias below the resistance zone it established at 1.2669-1.2609 and as long as it is sustained below this zone I anticipate a further surge to the lower side. In case you already sold GBP within the zone I mentioned earlier, remain bearish with your take profit at 1.1688 and stop-loss at 1.3026. If the price clearly breaks below the line 1.1688, I expect it to plunge further towards the lower support level marked at 1.0363, however, I expect possible bullish movements of price towards the resistance levels 1.3610 and 1.4376 should there be a clear breach above the zone 1.2669-1.2609.

Trade recommendation

Remain short with your take profit at 1.1688.