GBP facing negative pressure 8/11/2023

In the recent market developments, the British pound faced an unexpected shift in its trajectory, deviating from the previously projected upward trend as highlighted in our prior analysis. We had emphasized the significance of maintaining stability above the crucial support level at 1.2300. It is worth noting that our earlier report had cautioned that breaching this level would halt the upward momentum, placing the pair under negative pressure. This scenario materialized, and the pound hit a low of 1.2263, marking a significant dip in its value.

Examining the technical aspects today, there are notable indicators signaling a potential downward movement. The Stochastic indicator has started to emit negative signals, complemented by clear indications of bearish momentum on the 14-day momentum indicator. Furthermore, the pound has remained below the levels of 1.2300 and, notably, 1.2330.

Consequently, there is a growing possibility of a bearish bias in the near term. The primary targets include 1.2245 and subsequently 1.2210, which serve as the next designated support levels. Further downside targets may extend to 1.2170, pending market conditions. However, it is imperative to observe the price’s behavior around 1.2330, as a consolidation above this level could thwart the bearish scenario. In such a case, the pair may experience a direct recovery, aiming for levels at 1.2380 and 1.2410.

Please be advised that the market is awaiting high-impact press talks, including addresses from “Federal Reserve Governor Jerome Powell” and “BoE Governor,” which may contribute to heightened price fluctuations and increased volatility.

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: 1.2245	R1: 1.2330
S2: 1.2210	R2: 1.2380
S3: 1.2165	R3: 1.2415