GBP may witness a temporary bearish correction 15/6/2023

The pound sterling jumped against the US dollar yesterday, realizing solid gains, as we expected, getting close by a few pips to the official target required to be achieved during the previous technical report at 1.2720, recording its highest level at 1.2700.

Technically, the pair found a strong resistance level around the psychological barrier of 1.2700, which forced it to form some negative moves. With closer look at the 240-minute chart, we find the 50-day simple moving average supports the return of the rise, and on the other hand, negative signs began to appear on the stochastic. as a result of overbought.

We may witness a bearish bias in the coming hours, aiming to retest the strong support levels 1.2590 & 1.2550, before resuming the rise again.

Trading stability above 1.2700 will immediately stop the suggested scenario, and the push will continue to rise directly to visit 1.2750 & 1.2780.

Note: The risk level may be high.

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: 1.2590	R1: 1.2700
S2: 1.2540	R2: 1.2745
S3: 1.2490	R3: 1.2790