GBP presses support, eyes on inflation 21/6/2023

The pound sterling failed to stabilize for a long time above the psychological barrier of 1.2800, nullifying the positive outlook in which we relied on the price remaining above the pivotal support floor at 1.2740, recording its lowest level at 1.2714.

On the technical side, today, the pair started pressing the support mentioned above at 1.2740. Still, we notice the positive crossover signs that started to appear on the stochastic indicator on the 4-hour timeframe, stimulated by trading stability above the 50-day simple moving average.

We tend to be positive, but with caution, with trading steadily above 1.2740, targeting a retest of 1.2810 as a first target, and breaching it enhances the chances of touching 1.2860 initially.

As a reminder, closing the hourly candlestick below 1.2740 will immediately stop attempts to rise and lead the pair to enter a bearish wave, with targets around 1.2670 & 1.2630.

Note: Today, we await high-impact economic data issued by the British economy, the annual “consumer price index”, and “the testimony of the Federal Reserve Chairman” on the semi-annual monetary policy report before the House Financial Services Committee. We may witness a high price fluctuation during the news release.

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: 1.2720	R1: 1.2810
S2: 1.2670	R2: 1.2860
S3: 1.2620	R3: 1.2905