GBP maintains negative stability 30/5/2023

The pound sterling maintains its bearish path against the US dollar, within the negative technical outlook expected during the previous analysis, after finding strong resistance around the psychological barrier of 1.2400.

On the technical side, by looking at the 240-minute chart, we find the negative pressure from the simple moving averages supporting the daily bearish price curve, in addition to the stability of trading in general below the resistance level of 1.2380.

With the stability of daily trading below the previously broken support that turned into a resistance level at 1.2380, the bearish scenario remains the most likely, targeting 1.2290 as the first target and then 1.2245 as the next station.

Only from above, trading stabilizes again above 1.2380, and an hourly candle closes above it, which postpones chances of a downside move, and we may witness a retest of 1.2420, before determining the next price direction.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Consumer Confidence”, and we may witness high price fluctuations at the time of the news release.

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: 1.2330	R1: 1.2380
S2: 1.2265	R2: 1.2420
S3: 1.2210	R3: 1.2455