GBP attacks the resistance 5/10/2023

GBP/USD pair presented positive movements during the previous session to reflect the bearish trend expected during the last report, in which we relied on trading stability below the resistance of the falling price channel 1.2170.

On the technical side today, the pair is trying to build on the support floor of 1.2110 and most importantly 1.2090, which supports the possibility of an increase. On the other hand, we find that the 50-day simple moving average is still pressuring the price from above, in addition to the arrival of the Stochastic indicator on the overbought threshold.

We prefer to monitor price behavior during the coming hours until we obtain a signal confirming the upcoming intraday trend so that we are faced with one of the following scenarios:

Crossing upwards and the price consolidating above the pivotal resistance 1.2170 leads the pair to enter an upward correction whose targets start at 1.2210, while its official target is around 1.2270/1.2260.

Sneaking below 1.2090 is a sign of the completion of the downward directional movement, so we are waiting for 1.2020 and 1.1980, respectively.

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: 1.2070	R1: 1.2210
S2: 1.1980	R2: 1.2260
S3: 1.1930	R3: 1.2345