GBP maintains negative stability 31/10/2023

The technical outlook for the pound/dollar pair remains unchanged, with no significant shifts in its movements. Negative stability persists below the robust resistance level of 1.2175.

From a technical standpoint today, the sentiment leans towards negativity, with a focus on trading stability below 1.2170. This trend is supported by the return of the simple moving averages, exerting pressure on the price from above. The situation is further accentuated by clear negative signals from the Stochastic indicator.

As a result, the potential for a continued decline still looms. It’s important to note that slipping below 1.2090 would make it easier to reach 1.2050. If this level is breached, it would intensify the negative pressure, potentially leading to a touch at 1.2010, unless trading activity shifts above 1.2170.

A reminder: the bearish scenario would be invalidated if the pair manages to close at least an hour candle above 1.2185. In such a case, the pair could initiate a recovery phase, aiming for 1.2220 and 1.2270, respectively. Monitoring these critical levels is crucial for anticipating the pair’s future movements.

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: 1.2100	R1: 1.2185
S2: 1.2050	R2: 1.2220
S3: 1.2010	R3: 1.2270