GBP is hovering around a pivotal resistance 29/8/2023

Negative trades dominated the movements of the British pound against its US counterpart at the beginning of this week’s trading within the expected bearish context during the last report, approaching by a few points away from the target to be achieved around 1.2550, recording its lowest level at 1.2565.

On the technical side, the pair found a solid support floor near 1.2560, which forced it to bounce upwards in the middle of the last trading session, and the current movements are witnessing a retest of the pivotal resistance 1.2630, located at 61.80% correction. At the same time, the RSI continues to defend the return of the bearish trend.

We tend to be negative as trading stabilizes below the pivotal resistance 1.2630, targeting 1.2585 as a first target, and breaking it constitutes a negative pressure factor on the pair, opening the door towards 1.2550 and 1.2500, respectively.

As a reminder, closing the hourly candlestick above 1.2630 can thwart the bearish scenario, and the pair will recover temporarily to retest 1.2675 & 1.2720 before starting the decline again.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Composite Home Prices” and “Consumer Confidence.”

“Vacancies and labor turnover” and we may witness a high price fluctuation 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: 1.2585	R1: 1.2650
S2: 1.2545	R2: 1.2675
S3: 1.2500	R3: 1.2720