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The British pound incurred strong losses during the previous trading session, affected by the decisions of the Bank of England yesterday to reverse the cautious bullish trend. Explaining that the return of trading stability below the pivotal support floor of 1.2470 leads the pair towards achieving the bearish target of 1.2365, recording the lowest price at 1.2325.
Technically, the pair confirmed the breach of the 1.2470 support level and the breach of the psychological support level of 1.2400. However, the simple moving averages are still pressing the pair from above.
Therefore, the chances of continuing the decline are still valid and effective, provided that we witness a break of 1.2300, which can achieve more losses to visit 1.2250, a next target that may extend later to visit 1.2200 and 1.2150 as long as the price is stable below 1.2470.
Sterling’s consolidation above 1.2470 postpones the chances of a decline, and the pair may attempt to recover to retest 1.2560 before repeating its descending attempts.
Note: the pair’s trading today requires more attention.
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: 1.2250 | R1: 1.2560 |
| S2: 1.2130 | R2: 1.2755 |
| S3: |