GBP begins to press support 13/9/2023

The British pound reversed the expected upward trend during the previous technical report, in which we relied on trading stability above the psychological barrier support of 1.2500 at the time the report was issued, explaining that sneaking below the mentioned level will stop the expected upward trend and put the price under negative pressure with a target of 1.2470, recording its lowest level of 1.2460.

On the technical side today, the stability of intraday trading below 1.2500 supports negativity, in addition to the return of the simple moving averages, putting pressure on the price from above, stimulated by the clear negative signals on the 14-day momentum indicator.

Therefore, there is a possibility of resuming the downward path with the first target at 1.2455, noting that confirmation of breaking the aforementioned level extends the pair’s losses, opening the door to visit 1.2400.

For the bullish bias to return, we need to witness a breach and consolidation of the price above the strong resistance of 1.2555, which may motivate the price to retest 1.2600 and 1.2630, respectively.

Note: Today we are awaiting the monthly and annual US inflation data, the “Consumer Price Index,” and we may witness high price fluctuations when the news is released.

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: 1.2455	R1: 1.2555
S2: 1.2400	R2: 1.2600
S3: 1.2380	R3: 1.2630