GBP may start a corrective decline 19/7/2023

Trading tended to be positive, dominating the movements of the British pound against the US dollar until the middle of the previous trading session, after touching the first target of 1.3120, which formed a strong resistance level that succeeded in putting negative pressure on the pair and forcing it to trade negatively. Its current movements are witnessing stability around 1.3020.

On the technical side today, and with a closer look at the 4-hour chart, we find the price has returned to stability below the support level of 1.3075, and we find the stochastic indicator starting to lose bullish momentum, accompanied by a decline in momentum.

Therefore, there is a possibility of a bearish correctional tendency in the coming hours, knowing that the price’s decline below 1.2980 is a confirmation signal for a bearish correction, as we wait for 1.2940.

Closing an hourly candlestick above 1.3070, and most importantly 1.3090, nullifies the activation of the suggested scenario, and the pair returns to restore the bullish path, with targets starting at 1.3160 and extending towards 1.3200.

Note: Today we are awaiting high-impact economic data issued by the US economy, “housing starts,” and the report issued by the International Energy Agency on oil stocks, and we may witness high volatility 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: 1.2980	R1: 1.3090
S2: 1.2940	R2: 1.3160
S3: 1.2870	R3: 1.3205