GBP: Facing strong resistance 5/1/2023

The British Pound is facing negative pressure after it found strong resistance, as we indicated during the previous analysis, at 1.2080, which forced the pair to maintain negative stability and is now hovering around 1.2035.

On the technical side today, we are leaning towards negativity in our trading, relying on trading remaining below the resistance above and the clear negativity features on Stochastic, which started to lose bullish momentum gradually.

We keep our negative outlook, targeting 1.1960/1.1970, knowing that breaking the mentioned level will put the pair under strong negative pressure to visit 1.1900 next station.

The price’s consolidation above 1.2085 will immediately stop the bearish scenario, and the pair will recover from retesting the main resistance of the current trading level 1.2125 and may blame 1.2160 later.

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: 1.1970	R1: 1.2085
S2: 1.1900	R2: 1.2160
S3: 1.1840	R3: 1.2225