GBP confirms the break 6/9/2023

Yesterday, the pound sterling declined significantly against its American currency after failing to hold above the pivotal resistance of 1.2630. It was heading to touch the first awaited target at the price of 1.2550, recording its lowest level at 1.2530.

On the technical side today, we are leaning towards negativity in our trading, relying on trading stability below the main resistance of the current trading level 1.2630, represented by the 61.80% Fibonacci retracement as shown on the chart, in addition to price stability below the 50-day simple moving average.

The possibility of resuming the decline is still valid and effective, targeting 1.2520, and breaking it will increase and accelerate the strength of the downward trend so that we will be waiting for 1.2470 as the next target, and the target may extend to visit 1.2420.

From above, a 4-hour candle close above the main resistance 1.2625, 61.80% correction, is capable of foiling the proposed scenario and leading the pair to upward attempts, with targets starting at 1.2680 and 1.2720, 50.0% correction.

Note: Today we are awaiting high-impact economic data issued on the American economy, the “ISM Services Purchasing Managers’ Index,” and we may witness high volatility at the time of the news’s 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: 1.2520	R1: 1.2630
S2: 1.2470	R2: 1.2680
S3: 1.2420	R3: 1.2730