GBP Sterling continues to suffer from strong dollar 23/8/2022

The British pound continues to decline sharply against the US within the expected bearish path we mentioned during the last analysis. It is heading to touch the first target required to be touched at 1.1765, recording its lowest level at 1.1742.

Technically, the negative pressure formed by the simple moving averages enhances the chances of continuing the bearish directional movement, stabilizing the price below the previously broken support level, which is now turned into a strong supply point at 1.1830.

Therefore, we maintain our negative outlook, considering that the decline below 1.1730 facilitates the task required to visit the 1.1685 and 1.1640 targets following the current downside wave.

We remind you that attempts to stabilize the pair above 1.1830 may postpone the suggested scenario and temporarily recover the pair from retesting 1.1880.

We are awaiting the preliminary reading of the services PMI indicator, which has a significant impact and may witness high price volatility.

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: 1.1730	R1: 1.1830
S2: 1.1685	R2: 1.1880
S3: 1.1635	R3: 1.1920