Wait for a pullback to the zone 1.2635-1.258 | 06 October 2023

Technical observation

GBP is trading with an increasing bullish bias between the level 1.1688 and a resistance zone 1.2635-1.2589, this upwards movement is a pullback to the zone I have mentioned above and I expect a possible rejection within it followed by a surge to the lower side. My advice, remain flat and wait for a correction to the zone 1.2635-1.2589 then sell GBP within it with your take profit at 1.1588 and stop-loss at 1.2888, if the price declines below the level 1.1688 with a big red candle, I expect the value of GBP to plunge towards the supportive levels 1.0363 or lower, on the other hand, I expect bullish movements in case of a break above the zone 1.2635-1.2589.

Trade recommendation

Wait for a pullback to the zone 1.2635-1.2589 to sell GBP.