GBP: Negativity Remains 27/10/2023

Negative trades dominated the movements of the pound sterling against its American counterpart. In a gradual decline to the bottom, the pair posted its lowest level around the 1.2070 support level, forcing them to achieve some upward bounce to retest the 1.2140 resistance level.

On the technical side today, we are leaning towards negativity, relying on the stability of intraday trading below 1.2145 and, most importantly 1.2170. This is accompanied by the simple moving averages putting pressure on the price from above, stimulated by the clear negative signals on the Stochastic indicator.

Therefore, the possibility of continuing the decline still exists, noting that sneaking below 1.2090 facilitates the task required to visit 1.2045, and breaking it increases the negative pressure as we wait to touch 1.2010 unless we witness any trading above 1.2170.

Note: Today we are awaiting high-impact economic data in the US, the Core Personal Consumer Expenditure Price Index and we may witness high 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: 1.2090	R1: 1.2160
S2: 1.2045	R2: 1.2210
S3: 1.2000	R3: 1.2260