Wait | 06 July 2023

Technical observation

GBP rose to the resistance level 1.2847 then bounced at it and since then it has been trading with an increasing bearish bias. This downwards movement is a pullback to the supportive zone 1.2393-1.2366 and I expect a possible bounce within it or a clear break below it with a big red candle. My advice, remain neutral and wait for a correction to the zone I have indicated above then buy a bounce within it with your take profit at 1.2847 and stop-loss at 1.2242. If the price breaks below the zone 1.2393-1.2366, wait for a correction to the broken zone before you short GBP towards the supportive level 1.1797 or lower.

Trade recommendation

Remain flat.