GBP is the biggest loser against USD 22/9/2023

A strong downward trend, as we expected, dominated the movements of the British pound against the US dollar, touching the official target stations of 1.2275 and 1.2230, recording its lowest level of 1.2233.

On the technical side, by looking at the 240-minute time frame chart, we find that the pair achieved a strong break of the 1.2310 support level and turned into a resistance level, accompanied by negative pressure on the simple moving averages and clear negative signals on the Stochastic indicator.

Therefore, we maintain our negative expectations, targeting 1.2230 as a first target, and breaking it increases and accelerates the strength of the downward trend, opening the path directly towards 1.2170.

Only from above will the price cross upwards and consolidate again above the resistance of 1.2310, and most importantly, 1.2340, the proposed scenario will be stopped immediately and the pair will recover to retest 1.2395.

Note: Today we are awaiting high-impact economic data issued, the preliminary reading of the services and manufacturing PMI index in Europe, the UK and the US, and we may witness high fluctuation in prices 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: 1.2230	R1: 1.2340
S2: 1.2170	R2: 1.2395
S3: 1.2120	R3: 1.2445