GBP: stable below resistance 27/12/2022

GBPUSD pair is facing negative pressure after it failed over several consecutive sessions to stabilize for a long time above the resistance level of the psychological barrier 1.2100, as the current movements of the pair witnessed stability below the mentioned level.

Technically, by looking at the 240-minute chart, we notice the continuation of the negative pressure coming from the simple moving averages and the stochastic reaching overbought areas.

We tend to be negative, as intraday trading remains below 1.2100, and in general, below 1.2130, targeting 1.2055 as a first target, knowing that breaking it will extend the pair’s losses as we wait for a touch of 1.2000.

Only from above, the upside move and consolidation above 1.2140 negate the activation of the bearish scenario and lead the pair to restore the bullish path, with the initial target of 1.2200.

Note: In light of the absence of economic indicators during the holiday season, the decline in liquidity ratios, and thin trading volumes, we may witness random, irregular movements.

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: 1.2055	R1: 1.2100
S2: 1.2000	R2: 1.2140
S3: 1.1950	R3: 1.2205