GBP is looking for a clearer path 5/8/2022

Mixed movements dominated the performance of the pound sterling, affected by the Bank of England’s decisions yesterday, as part of attempts to maintain positive stability against the US dollar.

On the technical side, the pair rebounded after touching the strong support floor of 1.2065, which forced the pair to rise and touch 1.2218. With careful consideration of the chart, we find the intraday trades stable above 1.2065, and the pair is trying to trade within the shown bullish price channel, which increases the possibility of a rise; on the other hand, we the momentum declining on short time frames.

We prefer to monitor the price behaviour around the following levels to be in front of one of the following scenarios:

Below 1.2065, the pair may witness a negative trading session targeting 1.2000/1.1990, while consolidating above 1.2175 is considered a price catalyst that may lead the pair to visit 1.2210 and then 1.2290 initially.

Note: Today, we are waiting for high-impact data from the US economy, jobs data, unemployment rate and average wages,” and we may witness high price fluctuations.

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: 1.2065	R1: 1.2210
S2: 1.1990	R2: 1.2295
S3: 1.1910	R3: 1.2370