GBP facing strong resistance 25/10/2023

Trading tended to be positive with the beginning of yesterday’s trading session witnessing the movements of the British pound against the US dollar, gradually approaching the target of 1.2310, only to record its highest level of 1.2290.

On the technical side, today the pair returned to stability below the 50-day simple moving average and stability below the psychological barrier resistance level of 1.2200, which supports the possibility of a bearish bias in the coming hours. On the other hand, we find the Stochastic indicator trying positively to obtain additional momentum.

Due to conflicting technical signals, we prefer to monitor the price behavior of the pair to, waiting for one of the following scenarios:

To get an upward trend, we need to witness a breach of 1.2200, which may strengthen the move towards 1.2255 and 1.2310 while sneaking below 1.2120. the pair begins to achieve losses that start at 1.2070 and extend towards 1.2020.

Note: Today, the markets are awaiting high-impact data issued by the Canadian economy, represented by the Bank of Canada’s monetary policy report, interest statement, and interest rate decision, in addition to the speeches of the chairman of the Federal Reserve and the European Central Bank. We may witness fluctuation in the markets during the release of these data.

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: 1.2120	R1: 1.2255
S2: 1.2070	R2: 1.2340
S3: 1.1985	R3: 1.2390