GBP confirms the break 14/8/2023

Negative trading continued to control the pound sterling against the US dollar to start this week’s trading on clear negativity after failing to maintain its trading above 1.2720

On the technical side today, we tend in our trading to be negative, relying on the continuation of the negative pressure coming from the simple moving averages that support the daily bearish price curve, in addition to confirming the breach of the 1.2720 support level, which is now transformed into the 50.0% Fibonacci correction, as shown on the interval chart. My time is 4 hours.

Therefore, the bearish trend remains active, targeting 1.2630, the official awaited target, and breaking it increases, accelerates, and confirms the strength of the bearish daily trend, opening the way directly towards 1.2570.

Only from above, the price consolidated, and the closing of an hourly candle above the pivotal resistance 12720 negates the activation of the bearish scenario completely. The pair recovers temporarily as we await a retest of 1.2770 & 1.2810 before retreating again.

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: 1.2630	R1: 1.2720
S2: 1.2570	R2: 1.2770
S3: 1.2470	R3: 1.2810