Wait for a pullback to the zone 1.4137-1.4250 | 25 August 2023

Technical observation

On the chart above the price has been is retracing to the resistance zone it established at 1.4137-1.4250 however this week it rallied to the lower side, this bearish movement is a slight movement to the lower side and next week I anticipate bullish movements of price. My advice, remain neutral and wait for a correction to the zone I have mentioned above then sell a bounce within it with your take profit at 1.1307 and stop-loss at 1.5025. If the price declines below the level 1.1307, I expect the value of GBP to plunge towards the level 1.0368 or lower, but should there be a break above the zone 1.4137-1.4250, I expect the value of GBP to ascend towards 1.6725.

Trade recommendation

Wait for a pullback to the zone 1.4137-1.4250 to sell GBP.