GBP retests resistance 14/9/2023

Limited positive attempts dominated the movements of the pound sterling against the US dollar yesterday, benefiting from the support level of 1.2430, which forced it to achieve some upward bounce to retest the resistance level of the psychological barrier of 1.2500.

On the technical side today, the stability of intraday trading below 1.2500 support negativity and the continuation of negative pressure from the simple moving averages and stimulated by the loss of the Stochastic indicator, bullish momentum on the 4-hour time frame.

Therefore, there is a possibility of resuming the downward path with the first target at 1.2455, noting that confirmation of breaking the level above extends the pair’s losses, making the way directly open to visit 1.2400.

For the bullish bias to return, we need to witness a breach and consolidation of the price above the strong resistance 1.2555, which may motivate the price to retest 1.2600 and 1.2630, respectively.

Note: Today we are awaiting highly influential economic data issued by the European economy, “the monetary policy statement of the European Central Bank,” “interest rates on the euro and the press conference of the European Central Bank,” and regarding the American economy, we are awaiting the “producer prices” index and the “retail sales” index.

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: 1.2455	R1: 1.2555
S2: 1.2400	R2: 1.2600
S3: 1.2375	R3: 1.2630