GBP: between correction and trend 29/9/2023

After several successive declines of the pound sterling against the US dollar, achieving significant losses towards the level of 1.2110, yesterday’s trading session began with attempts to rise, benefiting from building on the support floor of the psychological barrier of 1.2100.

On the technical side today, by looking at the 4-hour time frame chart, we find the pair stable momentarily above the sub-resistance 1.2160. We explained in the previous report that the price’s consolidation above it may motivate the pair to retest 1.2200, recording its highest level at 1.2228. The 14-day momentum indicator provides additional positive signals. Trading remains stable above 1.2160.

We may witness an upward bias during today’s trading session, targeting a retest of 1.2260, the first target, and then 1.2300, the next official station, as long as trading remains stable above 1.2160.

Note: Today we are awaiting high-impact economic data issued by the American economy, the Core Personal Consumption Expenditure Index, and we may witness high fluctuation in prices at the time of the news 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: 1.2150	R1: 1.2260
S2: 1.2080	R2: 1.2300
S3: 1.2040	R3: 1.2370