GBP building on support 10/5/2023

GBPUSD retested the previously published pivotal support level at 1.2580, maintaining positive stability.

On the technical side, with a closer look at the 240-minute chart, we find that the pair is regularly working inside the bullish channel, and we find the 50-day simple moving average that supports the bullish daily price curve.

Therefore, with the stability of daily trading above the strong support floor 1.2580, the bullish bias is more likely, targeting 1.2660 & 1.2700 as next expected stations, and the gains may extend towards 1.2730.

Closing the hourly candlestick below 1.2580 could put the pound/dollar pair under negative pressure, with a target of 1.2520.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “US inflation data, consumer price index,” and we may witness high price fluctuations during 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: 1.2590	R1: 1.2660
S2: 1.2550	R2: 1.2700
S3: 1.2520	R3: 1.2735