GBP needs a negative incentive to continue the decline 17/8/2023

The technical outlook is unchanged, and the pair’s movements did not change significantly within limited positive attempts that witnessed the movements of the British pound against its American counterpart to temporarily reverse the expected bearish trend, recording its highest price at 1.2766, for the pair to fail to confirm the breach of 1.2760 and return to stability below it.

On the technical side, the Simple Moving Average still constitutes a negative pressure factor on the price, and this comes in conjunction with the return of negative signs on Stochastic, which started to lose bullish momentum due to overbought conditions.

From here, with the stability of intraday trading below the resistance of 1.2720, represented by Fibonacci correction 50.0%, that encourages us to maintain our negative expectations, knowing that infiltration below 1.2665 facilitates the task of visiting 1.2630 and breaking it increases and accelerates the strength of the bearish trend, opening the way towards 1.2570 initially.

Only from above, the price consolidated and an hourly candle closes at least the resistance level of 1.2760, which completely invalidates the activation of the bearish scenario. The pair recovers temporarily as we await a retest of 1.2820.

Note: Today we are awaiting high-impact economic data issued by the US economy, “unemployment benefits” and may witness high price volatility.

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: 1.2665	R1: 1.2760
S2: 1.2630	R2: 1.2820
S3: 1.2570	R3: 1.2870