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The British pound succeeded in retesting the support mentioned in the previous analysis, touching the required retest target at 1.2360, and recording the lowest price at 1.2330.
On the technical side today, the current moves are witnessing stability below the strong supply areas 1.2400, and most importantly 1.2430 represented by the 23.60% Fibonacci correction. On the other hand, we find clear signs of negativity on the stochastic indicator on the 4-hour time frame.
Despite the technical factors that support the possibility of a decline, confirming the break of 1.2350 is a prerequisite for the decline, facilitating the task required to visit 1.2310. Therefore, we must pay close attention and monitor the price behavior of the pair around 1.2310, because breaking it may extend losses to visit 1.2240 as long as the price is stable below 1.2430.
Consolidation above 1.2430 leads the pound to recover, heading towards 1.2475 initially.
Note: the 14 day momentum indicator tries to get positive signals on short intervals.
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.
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