The Pound is Witnessing a Bearish Formation 25/1/2022

Negative trades dominated the pound’s movements against the US dollar within the expected bearish context during the previous analysis, within a gradual decline to the downside, reaching the lowest level at 1.3490.

On the technical side, we face a bearish double top formation that is pressing the price and continuing the movement below the simple moving averages.

Therefore, the bearish bias may be the most likely today, targeting 1.3440 and 1.3400 official targets of the bearish technical structure shown on the chart, as long as the price is stable below the resistance level 1.3530.

Trading above 1.3530 postpones the chances of a decline but does not cancel them, and we may witness a temporary bullish bias that aims to retest 1.3600 before starting the decline again.

Warning: CFD trading involves risks; all scenarios may occur.

S1: 1.3440	R1: 1.3530
S2: 1.3400	R2: 1.3585
S3: 1.3365	R3: 1.3610