GBP is losing the temporary bullish momentum 16/5/2022

The Pound movements witnessed bullish attempts at the end of last week’s trading, aimed at retesting the previously broken support-into-resistance at 1.2300, resulting from the RSI receiving temporary positive signs, as we explained during the previous analysis.

Technically, by looking at the 240-minute chart, we notice the negativity features on the stochastic indicator, which started to gradually lose the bullish momentum, accompanied by the negative pressure of the 50-day simple moving average, which meets near the 1.2320 resistance level.

Therefore, the return of the negative movements may be the most likely today, targeting the strong demand area 1.2175/1.2165, considering that breaking it would pave the way for a further decline towards 1.2090.

Activating the proposed scenario requires stability and stability of the price below 1.2310, and the cohesion above it increases the possibility of touching 1.2375.

Note: Today, we are awaiting the monetary policy session, and we may witness high volatility.

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: 1.2175	R1: 1.2310
S2: 1.2090	R2: 1.2375
S3: 1.2030	R3: 1.2450