GBP: Negative pressure continues 19/9/2023

The pound sterling against the US dollar achieved the first bearish target within the bearish context expected during the previous report, at 1.2370, recording its lowest level of 1.2370.

On the technical side today, the stability of intraday trading below the resistance level of the psychological barrier 1.2400 and most notably below the strong resistance level of 1.2440 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 of 1.2440, which may motivate the price to retest 1.2480.

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: 1.2400
S2: 1.2300	R2: 1.2440
S3: 1.2270	R3: 1.2480