GBP facing negative pressure 16/10/2023

A downward trend dominated the movements of the pound sterling against the US dollar within the bearish context expected during the previous analysis, touching the first target 1.2140, recording its lowest level at 1.2138.

On the technical side today, we are leaning toward negativity in our trading, relying on trading stability below the extended resistance level of 1.2220/1.2200, which meets around the 50-day average and adds more strength.

Therefore, the price sneaking below 1.2130 extends the pair’s losses, as we wait to touch 1.2090 as a first target, and breaking it puts the price under strong negative pressure towards the 1.2040 area.

Only from above will the return of trading stability once again above the resistance of the psychological barrier 1.2200 and most importantly 1.2220 nullify the activation of the proposed bearish scenario and the pair will return to the upward trend with targets starting at 1.2290.

Note: Stochastic is around oversold areas and we may witness some fluctuation until we obtain the desired direction.

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: 1.2090	R1: 1.2220
S2: 1.2040	R2: 1.2295
S3: 1.1970	R3: 1.2345