GBP Needs to Monitor Price Behavior 23/2/2022

The pivotal resistance level published in the last analysis at 1.3610 managed to limit the bullish bias, which forced the pair to trade negatively to retest the required support touching 1.3565, recording the lowest price at 1.3540.

On the technical side today, by looking at the 4-hour chart, we notice that the price is stable above the 50-day moving average, which meets near the strong support level of 1.3565. We also find stochastic trying to obtain additional momentum. On the other hand, trading is still stable below 1.3610, represented by the 23.60% Fibonacci correction. It still constitutes an obstacle for the pair to prevent it from achieving more rise.

We will monitor the pair’s price behavior to determine the next price destination, knowing that the breach of 1.3610 is a motivating factor that may contribute to consolidating the gains to visit 1.3665. In contrast, the breach below 1.3565 may put the price under negative pressure, aiming to retest 1.3500 as an initial station.

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: 1.3565	R1: 1.3610
S2: 1.3500	R2: 1.3665
S3: 1.3460	R3: 1.3700