We are flat | 31 May 2023

Technical observation

GBP is trading with an increasing bearish bias between the supportive zone 1.2207-1.2190 and a resistance level 1.2657, I expect a continuation of this downwards movement to the zone I have mentioned above followed by either a rejection of price within it or a clear break below it with big red candle, My advice, remain neutral temporarily then wait for a correction to the zone I have indicated above to pick bullish positions with your take profit at 1.2658 and stop-loss at 1.2086. In case the price is not sustained above the zone 1.2207-1.2190 but clearly breaks below it with a big red candle, I expect it to plunge towards 1.1797.

Trade recommendation

Remain neutral.