GBP is losing momentum 7/2/2023

As we expected yesterday, the pound sterling continued to decline against the US dollar, approaching a few pips away from the target to be achieved at 1.1995, recording its lowest level at 1.2000.

On the technical side, the pair’s movements witnessed some limited bullish inclination due to approaching the support level of the psychological barrier 1.2000. It is currently trading around 1.2050; with a closer look at the 4-hour chart, we find signs of negativity returned to control the Stochastic indicator, which is gradually losing bullish momentum, in addition to the continuation of The pair obtained negative signals from the relative strength index, as it settled below the mid-line 50.

Therefore, the possibility of a decline is still valid and effective, knowing that the decline below 1.2000 facilitates the task required to visit 1.1965 and 1.1930, respectively, as long as daily trading is stable below 1.2080.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

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: 1.2000	R1: 1.2080
S2: 1.1965	R2: 1.2130
S3: 1.1930	R3: 1.2170