GBP retesting support 13/6/2023

The pound was able to touch the first target published during the previous technical decision at 1.2595, recording its highest level at 1.2600, to face intense selling pressure due to the collision with the resistance level of the psychological barrier of 1.2600.

On the technical side today, by looking at the 4-hour chart, the support level of 1.2470 succeeded in limiting the bearish bias, and we notice that the pair continued to receive a positive impulse from the simple moving average that continues to hold the price from below, accompanied by the beginning of positive signs appearing on the stochastic.

With trading remaining stable above 1.2470, that encourages us to maintain our positive outlook, knowing that the breach to the upside and the price’s consolidation above 1.2600 is a catalyst that enhances the chances of achieving gains that start at 1.2660 and extend later to visit 1.2720.

As a reminder, breaking 1.2470 can completely thwart the bullish scenario and put the pair under strong negative pressure, its initial target is 1.2415, while its official target is around 1.2380.

Note: Today we are awaiting high-impact economic data issued by the US economy “consumer price index” and from the United Kingdom “Bank of England governor’s speech” and we may witness high volatility 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: 1.2470	R1: 1.2595
S2: 1.2415	R2: 1.2660
S3: 1.2350	R3: 1.2720