Expecting a rally towards 1.2306. | 21 August 2023

Technical observation

On the chart above the value of GBP retraced to a resistance zone 1.2782-1.2795 then bounced within it and since then it has been trading with an increasing bearish bias, today I expect a further rally to the lower side and if you sold this pair within the zone indicated above remain in the trade with your take profit at 1.2306 and stop-loss at 1.2858. Should there be a clear breach below the key level 1.2306 with a big red candle, I expect the value of GBP to plunge towards the line 1.1807 or lower after a correction and a bounce at the broken level. On the chart above, I can only recommend bullish positions above the zone 1.2782-1.2795.

Trade recommendation

Remain short with your take profit at 1.2306.