GBP breaks support 26/10/2023

We remained neutral during the previous report due to the conflicting technical signals, explaining that we must witness a clear break of the 1.2110 level to target 1.2070 to activate the selling positions. The British pound recorded its lowest level at 1.2070 during the early trading of the current session.

On the technical side today, we are leaning towards negativity, relying on the stability of intraday trading below 1.2145 and, most importantly 1.2170. This is accompanied by the return of the simple moving averages putting pressure on the price from above, stimulated by the clear negative signals on the Stochastic indicator.

Therefore, the possibility of continuing the decline still exists as we continue toward the second target of the previous analysis, 1.2045.

Breaking this target increases the negative pressure as we wait to touch 1.2010. Later, the losses may extend towards 1.1950 unless we witness any trading above 1.2170.

Note: Today, we are awaiting high-impact economic data issued by the Eurozone (European Central Bank Monetary Policy Committee statement, European Central Bank press conference, interest rates on the euro)

In the US, (preliminary estimates of gross domestic product).

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: 1.2045	R1: 1.2145
S2: 1.2010	R2: 1.2210
S3: 1.1950	R3: 1.2245