GBP gives up its gains, looking for a catalyst 16/2/2023

The British Pound gave up its recent gains, as the previous session’s movements witnessed a bearish direction within the bearish path, as we expected in the last technical analysis, heading to touch the target 1.2085, recording its lowest level around the psychological barrier of 1.2000.

On the technical side today, we find the pair for the third consecutive session trying to maintain its stability above the strong demand area 1.2000. However, the simple moving averages still indicate the possibility of a return to the decline, supported by the clear negative signs on the momentum indicator.

We tend to be negative, but we prefer to witness a clear and strong break of the pivotal demand area 1.2000, which represents one of the most important keys to the trend, and breaking it accelerates the strength of the bearish daily trend, to be waiting for 1.1960 and 1.1930, respectively, and the losses may extend later towards 1.1880.

Activating the suggested bearish scenario requires daily trading to remain below 1.2110 and generally below 1.2150.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the monthly producer price 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: 1.1960	R1: 1.2155
S2: 1.1880	R2: 1.2265
S3: 1.1770	R3: 1.2345