GBP may witness a negative session 19/10/2023

For the second session in a row, the British pound found strong resistance at the 1.2200 level. Unable to break through, it settled below the 1.2150 support level.

On the technical side, we tend towards negativity in our trading, relying on the beginning of the emergence of a bearish technical formation on the 4-hour time frame, in addition to the return of the simple moving averages to put pressure on the price from above.

From here, with daily trading remaining below 1.2190, the bearish bias is the most likely during today’s trading, targeting 1.2090 as the first target, and breaking it will extend the pair’s losses, as we wait for 1.2040, the next official station.

From the top, jumping upwards and rising again above 1.2190, and most importantly 1.2200, will be stopped immediately and the pair will recover again with a target of 1.2240 and then 1.2270.

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: 1.2090	R1: 1.2190
S2: 1.2040	R2: 1.2240
S3: 1.2000	R3: 1.2270