GBP may witness further decline 20/9/2023

The British pound returned the psychological barrier resistance level at 1.2400, unable to breach it yet, which forced it to trade negatively again and is currently hovering around 1.2385.

On the technical side today, the stability of intraday trading below the psychological barrier resistance level of 1.2400 supports negativity, in addition to the continuation of negative pressure coming from the simple moving averages that continue to exert negative pressure on the price from above, and this comes in conjunction with the clear negative signals on the Stochastic indicator.

Therefore, we maintain our negative expectations, targeting 1.2340 as the first target, noting that confirmation of breaking the aforementioned level extends the pair’s losses, making the way directly open to visit 1.2300/1.2310.

From above, the return of the bullish bias, we need to witness a breakout and consolidation of the price above the strong resistance 1.2440, and this may motivate the price to retest 1.2480.

Note: Today, we are awaiting high-impact economic data issued by the American economy “the Federal Reserve Committee statement, the interest rate decision and forecast, followed by a press conference. We may witness high price fluctuations at the time the news is released.

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: 1.2345	R1: 1.2420
S2: 1.2300	R2: 1.2450
S3: 1.2270	R3: 1.2480