GBP extends its losses 7/9/2023

During the previous analysis, the British pound recorded notable losses against the US dollar within the expected negative technical outlook, touching the first bearish target of 1.2520, approaching the second target of 1.2470, and recording its lowest level of 1.2480.

Technically, we are leaning toward negativity in our trading, relying on the stability of intraday trading below the resistance level of 1.2565, and in general below the main resistance of the current trading levels of 1.2630 represented by the 61.80% Fibonacci retracement as shown on the chart, in addition to price stability below the simple moving average of 50days.

The possibility of resuming the decline still exists, noting that breaking 1.2480 will facilitate the task required to visit 1.2460 and 1.2420, respectively, and losses may extend later towards 1.2360.

From above, closing the hourly candle above 1.2565 postpones the chances of a decline but does not cancel it. We may witness a retest of the main resistance 1.2625, the 61.80% correction, before the decline begins 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: 1.2460	R1: 1.2565
S2: 1.2420	R2: 1.2630
S3: 1.2360	R3: 1.2670