GBP returns to negativity 5/6/2023

The pound sterling failed to breach the strong resistance level at 1.2545 for several consecutive sessions; It was unable to achieve a daily closing above it, which forced the pair to maintain negative stability below it, to witness the current movements stabilizing around 1.2430.

On the technical side today, we tend to be negative in our trading, but with caution, relying on the clear negative signs on the stochastic indicator and the stability of the relative strength index below the middle line of 50.

From here, with the stability of intraday trading below 1.2510, and in general below the main resistance of the current trading level of 1.2540, the bearish scenario remains the most favourable, targeting 1.2400 as a first target, and breaking it increases and accelerates the strength of the bearish trend, paving the way for the pair to visit 1.2350 initially, knowing that the losses may extend later towards 1.2305 as long as it remains. Trading is stable below 1.2540.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Service PMI” and “European Central Governor Lagarde’s speech,” and we may witness high price fluctuations at the time of 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: 1.2400	R1: 1.2510
S2: 1.2350	R2: 1.2588
S3: 1.2275	R3: 1.2630