GBP started a bearish correction 29/6/2023

The pound sterling declined significantly against the US dollar due to colliding with the resistance level of 1.2750, which forced the pair to provide negative trades and succeeded in breaching 1.2760.

On the technical side today, we are inclined towards a corrective decline, depending on the confirmation of the pair’s breach of the strong support floor 1.2670, which turned into a support level, in addition to the continuation of the negative pressure from the simple moving averages.

Therefore, the possibility of a drop, targeting 1.2575; the first target is around 50.% Fibonacci correction, as shown on the 4-hour chart, and then 1.2515, 61.80% correction, an awaited station, unless we witness trading above 1.2680, and most importantly 1.2720.

Note: Today, we are awaiting high-impact economic data issued by the US economy “Quarterly Gross Domestic Product”, 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: 1.2570	R1: 1.2720
S2: 1.2515	R2: 1.2810
S3: 1.2430	R3: 1.2860