British Pound Faces a Downside Scenario

The pound was able to achieve the first awaited target we mentioned in the previous analysis at 1.2840, recording its lowest level at 1.2845.

On the technical side, the support level represented by our target was able to push the pair up again with the aim of re-testing the resistance level of 1.2960.

Looking at the chart, we find that there are some negative signs appearing on the stochastic indicator, which leads us to believe that there is a possibility of returning the bearish bias again, noting that trading below 1.2900 facilitates the mission required to visit 1.2875 then 1.2840, the price must be carefully monitored around 1.2840, the break of this level is a signal to enter a strong selling wave targeting 1.2810 and 1.2775, and losses may extend to 1.2720 later.

On the upside, a price rally above 1.2965 will negate the bearish scenario and lead the pair to an upside to 1.3010 / 1.3000, followed by 1.3065.

S1: 1.2875	R1: 1.2970
S2: 1.2815	R2: 1.3005
S3: 1.2775	R3: 1.3065