GBP may resume decline 9/8/2023

The pound sterling declined significantly against the US dollar yesterday, within the expected bearish context, approaching by a few pips from the target published yesterday at 1.2675, recording its lowest level at 1.2685.

On the technical side today, the negative crossover signs are still clear on stochastic, and support the possibility of a decline, and this comes in conjunction with trading stability below the resistance of the psychological barrier 1.2800, and the most important 1.2830, the 38.20% correction.

We just need trading to remain below 1.2720, the 50.0% correction, which constitutes a negative pressure factor on the pair, to target 1.2695 and 1.2620 as official waiting stations, as long as trading remains stable below 1.2820.

Only from above, the price’s consolidation above the pivotal resistance 1.2820 invalidates the activation of the bearish scenario completely, and the pair recovers temporarily as we await a retest of 1.2850 & 1.2880.

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: 1.2695	R1: 1.2800
S2: 1.2640	R2: 1.2850
S3: 1.2590	R3: 1.2900