GBP facing negative pressure, eyes on GDP 12/8/2022

The resistance levels published during the previous analysis, located at 1.2250 price, were able to limit the limited bullish bias and forced the pair to trade with negativity, unable to breach it within the expected bearish context.

Technically, with careful consideration, we find the stochastic indicator still provides negative signals in addition to the stability of trading below 1.2250. Therefore, we believe that there is a possibility of a negative move in the coming hours, targeting 1.2160, taking into account that breaking the mentioned level increases and accelerates the strength of the bearish bias, opening the way for the pair to visit 1.2100 /1.2110 station waiting.

Only from above, coherence and stability above 1.2250 will nullify the activation of the suggested bearish scenario and lead the pair to recover temporarily towards 1.2280, and gains may extend towards 1.2320.

Note: Monthly – Quarterly GDP figures are due today in the UK and we could see significant impact and volatility in the pair’s movements.

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: 1.2160	R1: 1.2240
S2: 1.2100	R2: 1.2280
S3: 1.2065	R3: 1.3330