GBP retesting support 20/6/2023

The British Pound maintained its gains against its American rival after building on the strong support floor at 1.2740.

On the technical side, and upon closer look at the 240-minute chart, we find that the 50-day simple moving average supports the return of the upside. On the other hand, negative signs began to appear on the stochastic due to overbought.

We may witness a bearish bias in the coming hours to retest the strong support level 1.2740, before resuming the rise again, knowing that the bearish bias does not contradict the bullish daily trend, whose official targets are located around 1.2840 & 1.2880, once the price consolidates again above 1.2800.

Breaking the main support 1.2740 leads the pair to enter a bearish wave, with targets starting around 1.2640.

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: 1.2740	R1: 1.2800
S2: 1.2700	R2: 1.2840
S3: 1.2675	R3: 1.2885