GBP: Breaking the support may stop the bullish correction 14/9/2022

The Sterling achieved the awaited bullish target during the previous technical report at 1.1740, recording its highest level at 1.1740, before falling again against the dollar after the appearance of US inflation figures that pushed the US currency up.

Technically, the pair is now hovering around a pivotal demand point of 1.1485/1.1500, accompanied by negative pressure from the 50-day simple moving average, which constitutes an obstacle for the pair, in addition to the return of work within the bearish channel’s pivots.

Technical factors indicate that the bullish correction has stopped. Still, we need to witness a clear and strong breach of the demand as mentioned earlier point at 1.1485, which puts the pair under strong negative pressure, with its initial target of retesting the bottom of 1.1410 as long as the price is stable below 1.1600.

Note: We are waiting for US inflation data “Producer Price Index,” which has an impact, and we may witness high price fluctuations.

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: 1.1420	R1: 1.1670
S2: 1.1330	R2: 1.1830
S3: 1.1170	R3: 1.1920