Pound Continues to Decline Against US Dollar

Strong declines in the movement of the pound against the US dollar approached by a few points from the first target of the current wave of decline, as we expected at 1.3220, recording a low at 1.3242.

On the technical side, and with a closer look at the 4-hour chart, we find the 50-day simple moving average that continues its negative pressure on the price from below, and meets around 1.3380 resistance and adds more strength to it.

From here, with steady trading below 1.3380 / 1.3400, the bearish scenario remains valid and effective targeting 1.3240, bearing in mind that breaking the aforementioned level forces the pair to visit the second official target of the current downside wave at 1.3150 / 1.3140.

In general, we continue to suggest the bearish trend as long as trading remains stable below 1.3400, a breach of it will immediately stop the bearish trend and the pair will recover and we will witness a re-test of 1.3500.

Note: the level of risk remains high.

S1: 1.3235	R1: 1.3400
S2: 1.3155	R2: 1.3490
S3: 1.3065	R3: 1.3570