GBP is waiting for a signal 25/5/2022

Mixed trading dominated the movements of the pound sterling against the US dollar, affected by the negative data, to reflect the expected bullish bias, touching the stop-loss order published during the last analysis at 1.2500, recording the lowest level at 1.2470.

Technically, and with careful consideration of the 4-hour chart, we notice the return of the stability of trading again above the strong support floor 1.2500, with the continuation of moving above the 50-day simple moving average, and this increases the possibility of a rise, on the other hand, we find negativity dominating the momentum indicator in addition to the unclear signals Coming from the RSI.

Therefore, we prefer to monitor the price behaviour of the pair and wait for the activation of the following pending orders:

Repurchase requires consolidation and stability above 1.2565 to target 1.2600, and gains may extend towards 1.2640.

The decline below 1.2500 targets 1.2470, and losses may extend to visit 1.2420.

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: 1.2470	R1: 1.2600
S2: 1.2405	R2: 1.2670
S3: 1.2340	R3: 1.2730