GBP is facing selling pressure 1/6/2022

The British pound touched the retest target mentioned yesterday at 1.2570, recording its lowest level at 1.2560.

Technically, looking at the 4-hour chart, we notice that Stochastic is losing bullish momentum, accompanied by negative signs from the 14-day momentum indicator.

From here, and with the stability of daily trading below 1.2640, the bearish scenario is the most preferred, towards the 2nd target of 1.2540, and then 1.2505, the next official station, as long as the price is stable below 1.2640.

Consolidation above 1.2640 invalidates the suggested bearish scenario and leads the pair to retest 1.2690 directly.

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: 1.2540	R1: 1.2640
S2: 1.2505	R2: 1.2695
S3: 1.2450	R3: 1.2735