GBP loses bullish momentum 10/6/2022

The British pound started today’s session within the expected bearish context during the previous analysis, in which we relied on breaking the 1.2500 support level to record its lowest level during the early trading of the current session, 1.2480.

Technically, we notice on the 4-hour time frame the continuation of the negative pressure coming from the 50-day simple moving average, which supports the bearish price curve, in addition to the RSI receiving negative signals, stable below the 50 mid-line.

Therefore, the bearish scenario remains the most likely, targeting 1.2465 as the first target, considering that the decline below the mentioned level increases and accelerates the strength of the bearish trend, paving the way for the awaited official station 1.2420/1.2430.

The general trend in the short term is to the downside as long as the price remains below the 1.2575 resistance level and, most importantly, 1.2600.

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: 1.2465	R1: 1.2545
S2: 1.2430	R2: 1.2595
S3: 1.2380	R3: 1.2630