GBP is hovering around support, await a new signal 25/1/2023

Temporary negative movements dominated the pound sterling against the US dollar during the last trading session after it succeeded in pressuring the support floor at 1.2330, explaining that breaking it would lead the pair to retest 1.2255, recording its lowest level at 1.2264.

On the technical side today, by looking at the 4-hour chart, we find that the pair is now hovering around the support level of 1.2330, stable above the 50-day simple moving average, in addition to the momentum indicator’s attempts to get rid of the current negativity.

We tend to be positive, but with caution, knowing that the price’s consolidation above the minor resistance of 1.2350 motivates the price to rise again, targeting 1.2400/1.2405.

You should be aware that closing the 4-hour candlestick below 1.2330 will stop attempts to rise, and we will witness a trading session in negative areas, targeting 1.2260 & 1.2200.

Note: the quality is not high

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: 1.2260	R1: 1.2405
S2: 1.2185	R2: 1.2485
S3: 1.2105	R3: 1.2550