GBP is on a side track 21/8/2023

Sideways trading regained control over the movements of the British pound against the US dollar, as the movements witnessed stability from below 1.2710 and below 1.2770.

On the technical side, today, we find the pair hovering around the 50-day simple moving average. A closer look at the 240-minute chart shows that Stochastic gradually loses bullish momentum.

From here, with steady intraday trading below the resistance of 1.2770, that encourages us to hold onto our negative expectations, knowing that a decline below 1.2710 facilitates the task of visiting 1.2665, and breaking it increases and accelerates the strength of the bearish trend, paving the way towards 1.2620, the official target.

Only from above, the price consolidated and the closing of an hourly candle at least the resistance level of 1.2760, completely invalidates the activation of the bearish scenario. The pair recovers temporarily, as we await a retest of 1.2800 and then 1.2830.

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: 1.2770
S2: 1.2655	R2: 1.2810
S3: 1.2620	R3: 1.2845