GBP may resume the bearish correction 5/7/2023

The British pound maintains its negative stability against the US dollar, and the pair’s movements are still stable below the pivotal resistance level at 1.2740/1.2430.

On the technical side today, we are in favour of a corrective decline, relying on the bearish technical formation shown on the 4-hour chart, in addition to the continuation of the negative pressure of the Simple Moving Averages.

Therefore, the possibility of a decline is listed, targeting 1.2680 as a first target and then 1.2640, the correction of 38.20%, as shown on the chart, knowing that activating the suggested bearish scenario requires trading to remain below 1.2730.

Consolidation of the price above 1.2730 postpones the chances of a decline, and we may witness a limited bullish bias, aiming to retest 1.2770 before falling again.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the Federal Reserve Committee statement,” and the “OPEC meeting”, 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: 1.2680	R1: 1.2730
S2: 1.2620	R2: 1.2770
S3: 1.2570	R3: 1.2810