GBP making counterattacks on the Dollar 10/5/2022

Mixed trading dominated the movements of the pound sterling against the US dollar during the previous trading session, trying to rebound to the upside after successive sessions of the decline, building on the support of 1.2270, which forced it to retest the pivotal supply area of 1.2410.

Technically, by looking at the 4-hour chart, we notice the price stability below 1.2410, as we find the stochastic indicator started losing the bullish momentum gradually, on the other hand, we notice the clear positive signs on the 14-day momentum indicator on the short time frames.

We prefer to monitor the price behavior of the pair to form a more accurate picture of the daily trend so that we are waiting for the activation of the following pending orders:

Rising above 1.2400 increases the possibility of touching 1.2430, and we must pay close attention if the mentioned level is touched, because a breach may pave the road to visit 1.2490, while the return of stability of trading again below 1.2300 and most importantly 1.2280 that leads the pair to complete the official descending path with an initial target of 1.2200 that may extend Later to visit 1.2175.

Note: The risk level is high.

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: 1.2280	R1: 1.2430
S2: 1.2200	R2: 1.2490
S3: 1.2140	R3: 1.2575