GBP facing negative pressure 31/1/2023

The Sterling pound hit the resistance of the psychological barrier at 1.2400, which forced it to trade negatively again, heading to retest the 1.2330 support.

The technical side today indicates the possibility of a bearish bias as a result of the simple moving averages starting to exert negative pressure on the price from above, and the 50-day simple moving average meets near 1.2380 and adds more strength to it, in addition to the negative signs that started to appear on the stochastic.

Despite the technical factors supporting the decline, we prefer to witness a clear and strong break of the support floor at 1.2330, which puts the pair under strong negative pressure, with targets starting at 1.2285 and later extending towards 1.2230.

We remind you that the price’s return to consolidation above 1.2400 will immediately stop the possibility of continuing the decline, and the pair will begin to restore its bullish path towards 1.2450 initially.

Note: Today we are awaiting high-impact data from the US economy, “Consumer Confidence Index,” 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: 1.2330	R1: 1.2400
S2: 1.2285	R2: 1.2450
S3: 1.2230	R3: 1.2480