GBP Retests Support 7/11/2023

In its recent market movements, the British pound has approached significant resistance levels, reaching a high of 1.2438, closely mirroring the previously predicted upward target of 1.2450. As traders closely observe these developments, technical indicators provide valuable insights into the currency pair’s potential direction.

A closer examination of the 4-hour chart reveals a current stabilization below the psychological barrier of 1.2400. Simple moving averages continue to influence the price from below, further highlighted by the Stochastic indicator’s efforts to counter prevailing negativity.

In the near term, a retest of the pivotal support level at 1.2300 may be on the horizon before renewed attempts to ascend. Initial targets stand at 1.2400, with potential gains extending towards 1.2460 as momentum builds.

However, it’s crucial to note that a confirmed break below 1.2300, supported by the closing of the hourly candle, could halt the upward momentum, putting the pair under negative pressure. In such a scenario, the initial downside target rests at 1.2270. Traders are advised to monitor these levels closely for strategic decision-making in their trading endeavors.

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: 1.2300	R1: 1.2400
S2: 1.2270	R2: 1.2460
S3: 12210	R3: 1.2495