Wait | 20 January 2022

20 January 2022, GBP/USD

Wait

Technical observation

GBP retraced to the supportive zone it established at 1.3593-1.3563 but could not break below it and as long as it is sustained above this zone I expect the value of this pair to ascend towards the resistance level 1.3966. I would advised that you remain flat and wait for a second retracement to the zone mentioned above then buy GBP within it with your take profit at 1.3966 and stop loss at 1.3456. In case the value of this pair is not contained above the zone 1.3593-1.3563 but instead penetrates below it with a big red candle, I expect GBP to descend towards the supportive level 1.3206 after a correction to the broken zone.

Trade recommendation

Wait for a second retracement to the zone 1.3593-1.3563 to buy GBP.

Imelda Maseno
Analyst of «FreshForex» company
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