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The British Pound declined significantly during the previous session’s trading within the expected bearish context for a gradual decline to the downside, approaching the target of 1.2510 and recording its lowest level at 1.2545.
On the technical side, today, the pair’s current movements are witnessing stability below the previously broken support, which turned into a resistance level of 1.2630, represented by 61.80% Fibonacci correction, as shown on the 4-hour time frame, accompanied by the loss of the bullish momentum stochastic.
From here, with steady trading below 1.2630 and, most importantly, 1.2650, the bearish scenario remains the most likely, targeting 1.2550 as the first target, and breaking it constitutes a negative pressure factor on the pair, paving the way for a visit to 1.2500 next station.
Crossing to the upside and rising again above 1.2650, with an hourly candle closing at least, invalidates the activation of the suggested scenario, and the pair recovers directly to retest 1.2720, the 50.0% correction.
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.
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