GBP needs to monitor price behavior 6/10/2022

The British pound gave up its recent intraday gains to temporarily reverse the expected direction yesterday and recorded its lowest level around 1.1220.

On the technical side today, and with a careful look at the 4-hour chart, we find the stochastic is trying to obtain positive crossover signs accompanying the price stability above the 50-day simple moving average.

Despite the technical factors that still support the possibility of a rise, the return of stability below 1.1400 makes us prefer to monitor the price behavior of the pair and wait for the following:

Consolidation above the psychological resistance level of 1.1400 may enhance the chances of touching 1.1440, and then 1.1495 next station.

The decline below the 1.1225 demand point puts the pair under strong negative pressure, its initial target is 1.1180, and we should pay close attention to this level due to its importance for the general trend on an intraday basis and a break that opens the door to 1.1090.

A review is required.

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: 1.1225	R1: 1.1495
S2: 1.1090	R2: 1.1630
S3: 1.0960	R3:  1.1765