GBP may extend its losses 25/9/2023

The British pound suffered significant losses against the US dollar within the expected negative outlook at the end of last week’s trading, touching the first official target of 1.2230, recording its lowest level of 1.2230.

On the technical side, by looking at the 240-minute time frame chart, we find that the pair achieved a strong break of the 1.2310 support level and turned into a resistance level, accompanied by negative pressure on the simple moving averages, in addition to regular work within the descending price channel.

Therefore, we maintain our negative expectations, targeting 1.2230 as a first target, and breaking it increases and accelerates the strength of the downward trend, opening the way directly towards 1.2150/1.2130, next official station.

Only from above will the price cross upwards and consolidate again above the resistance of 1.2280 and, more importantly, 1.2310; the proposed scenario will be stopped immediately, and the pair will recover to retest 1.2350 and 1.2395.

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: 1.2215	R1: 1.2280
S2: 1.2190	R2: 1.2310
S3: 1.2150	R3: 1.2350