GBP is building on support 8/9/2022

The British pound succeeded in touching the first official bearish target published during the last analysis, at 1.1410, recording the lowest level at 1.1405, to find a strong demand point at the required target to lead the pair to the bullish rebound and retest the resistance level of the psychological barrier 1.1500.

Technically, the pair succeeded in breaching the resistance level of 1.1470; despite the continuation of the negative pressure of the 50-day SMA, which constitutes an obstacle to the pair, the possibility of a bullish bias in the coming hours may exist, depending on the attempts of the stochastic indicator to obtain positive momentum.

Therefore, we may witness a bullish bias whose first target is around 1.1560, and the price behavior of the pair should be monitored well around the mentioned level due to its importance for the general trend on an intraday basis. Its breach will expand the intraday gains to visit 1.1620.

The decline below 1.1470 and, most importantly, 1.1410 will immediately stop the suggested bullish scenario and lead the pair to complete the main bearish price movement, waiting for 1.1350 and 1.1290, respectively.

Note: The ECB rate decision, press conference, MPC statement, and Fed Chairman’s speech are due today; all could lead to 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: 1.1425	R1: 1.1560
S2: 1.1350	R2: 1.1620
S3: 1.1290	R3: 1.1690