GBP: retesting support 13/12/2022

The pound was not able to settle for long above the resistance level of the psychological barrier of 1.2300, which we mentioned yesterday as representing the key to the continuation of the rise, forcing the pair to trade in negativity, and the current movements are witnessing stability around 1.2260.

Technically, signs of negativity began to appear on the stochastic, and its loss of bullish momentum puts the pair under negative pressure, in addition to the stability of daily trading below the resistance level of 1.2300.

We may witness a bearish tendency in the coming hours, aiming to retest 1.2210 around the 50-day moving average as a first target, and the drop may extend towards 1.2170 before attempts to rise again, knowing that consolidation above 1.2305 invalidates the activation of the temporary bearish scenario, and leads the pair to continue rising towards 1.2350 and 1.2400 initially.

Today we are awaiting high-impact economic data, and we may witness fluctuations at the time of news release:-

• The consumer price index from the United States of America is one of the most important measures of inflation and has an impact on the interest rate decision.

– Change in unemployment benefits from the UK, Bank of England Governor’s Speech.

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: 1.2210	R1: 1.2305
S2: 1.2160	R2: 1.2350
S3: 1.2120	R3: 1.2400