GBP is waiting for a negative stimulus 21/2/2023

By the end of last week’s trading, the pound achieved the official bearish target at 1.1930, recording its lowest level at 1.1915, before starting the bullish rebound to retest 1.2050.

On the technical side today, we find the 14-day momentum indicator stable below the 50 mid-line, in addition to signs of negativity that started to appear on the stochastic, which shows signs of declining momentum.

We tend to be negative, but we prefer to confirm breaking the support of the psychological barrier 1.2000, which will extend the pair’s losses, opening the door to visit 1.1940 and then 1.1860, waiting station, unless we witness any trading above 1.2075.

Note: Today we are awaiting high-impact economic data issued by the British economy “manufacturing and services PMI,” and we may witness high volatility at the time of issuance, in addition to the US “services PMI”.

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: 1.1940	R1: 1.2075
S2: 1.1860	R2: 1.2130
S3: 1.1810	R3: 1.2210