GBP needs to confirm breaking the support 11/5/2022

GBPUSD did not show significant moves during the previous trading session, trying to maintain trading levels above 1.2300.

Technically, and carefully considering the 4-hour chart, we notice the price stability below 1.2410, as we find the stochastic indicator started losing the bullish momentum gradually, accompanied by the return of the 50-day simple moving average to pressure the price from the top.

Despite the technical factors that support the resumption of the bearish trend, we prefer to monitor the price behavior of the pair to form a more accurate picture of the daily trend so that we are waiting for the activation of the following pending orders:

Rising above 1.2400 increases the possibility of touching 1.2430, and we must pay close attention if the mentioned level is touched because a breach may open the door to reduce losses and visit 1.2490, while the return of stability of trading again below 1.2300 and most importantly 1.2280 that leads the pair to complete the official descending path with an initial target of 1.2200 that may extend Later to visit 1.2175.

Note: The risk level is high.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.2280	R1: 1.2430
S2: 1.2200	R2: 1.2490
S3: 1.2140	R3: 1.2575