GBP maintains the bearish correction 6/7/2023

The technical outlook is unchanged, and the pound’s movements did not change against the US dollar, maintaining the bearish context below 1.2730.

On the technical side today, we favour a corrective decline, relying on the bearish technical formation shown on the 4-hour chart, in addition to the continuation of the negative pressure of the Simple Moving Averages.

Therefore, the possibility of a decline exists, knowing that confirming the breach of 1.2680 facilitates the task required to visit the first target and then 1.2640, the 38.20% correction, as shown on the chart, knowing that activating the suggested bearish scenario requires trading to remain below 1.2730.

Consolidation of the price above 1.2730 postpones the chances of a decline, and we may witness a little bullish bias, aiming to retest 1.2770 before falling again.

Note: Today we are awaiting high-impact economic data issued by the US economy, “jobs data in the non-agricultural private sector,” “vacant jobs and labor turnover,” service purchasing managers, “OPEC meeting,” and “the report issued by the International Energy Agency on oil stocks.” We may witness high volatility at the time of issuance of the news.

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: 1.2680	R1: 1.2730
S2: 1.2620	R2: 1.2770
S3: 1.2570	R3: 1.2810