GBP continues its gradual decline 4/10/2023

Negative trading dominated the movements of the British pound against its American counterpart within the expected downward path during the previous report, continuing the gradual decline towards the required target of 1.2020, recording its lowest level of 1.2053.

Technically, we tend toward negativity in our trading, relying on the stability of intraday trading below the previously broken support that has been transformed into a resistance level according to the principle of reversing roles 1.2170, in addition to price stability below the simple moving averages that continue to put negative pressure on the price from above.

Therefore, the downward trend is the most likely during the day, targeting 1.2020 as the next target, and breaking the mentioned level extends the pair’s losses, so we are waiting for 1.1970 as the next stop as long as trading remains stable below 1.2170.

The price’s consolidation above 1.2170 invalidates the activation of the proposed scenario, and the pair recovers, heading to retest 1.2270.

Note: Today we are awaiting high-impact economic data issued by the US economy: the change in private sector jobs, the services purchasing managers’ index issued by the ISM, the meeting of the OPEC Joint Ministerial Follow-up Committee, and the speech of Christina Lagarde, President of the European Central Bank, and we may witness high volatility 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: 1.2020	R1: 1.2170
S2: 1.1970	R2: 1.2270
S3: 1.1870	R3: 1.2320