GBP: negative pressure continues 6/7/2022

Noticeable negative trades dominated the movements of GBP/USD within the expected bearish direction, surpassing the official target required during the previous technical analysis at 1.2000, recording the lowest at 1.1898 yesterday.

Technically, and by looking at the 240-minute chart, we find that negativity still dominates the stochastic indicator, which continues to lose bullish momentum, in addition to the stability of the RSI below the mid-line 50.

Therefore, the bearish trend is the most preferred today. Knowing that a decline below 1.1950 facilitates the task required to visit 1.1900 first target, and breaking it increases and accelerates the strength of the bearish trend waiting for 1.1860.

Consolidation above 1.2085 leads the pair to recover temporarily, to retest 1.2220 before attempts to decline again.

Note: The Fed’s statement is due today and could lead to some 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: 1.1860	R1: 1.2085
S2: 1.1765	R2: 1.2220
S3: 1.1635	R3: 1.2315