GBP maintains the bearish trend 26/5/2023

Negative trades dominated the movements of the British pound against its US counterpart during the previous session’s trading within the expected negative outlook in the last analysis, approaching by a few points away from the required target of 1.2290, recording its lowest level at 1.2308.

On the technical side, by looking at the 240-minute chart, we find the negative pressure from the simple moving averages supporting the daily bearish price curve, in addition to the stability of trading in general below the resistance level of 1.2380.

With the stability of daily trading below the previously broken support that turned into a resistance level at 1.2380, the bearish scenario remains the most likely, targeting 1.2290 as the first target and then 1.2245 as the next station.

Only from above, trading stabilizes once again above 1.2380, and an hourly candle closes above it, which postpones chances of a downside move, and we may witness a retest of 1.2420 before determining the next price direction.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “personal consumption spending,” and we may witness high price fluctuations 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: 1.2300	R1: 1.2375
S2: 1.2265	R2: 1.2420
S3: 1.2210	R3: 1.2455