GBP settled below resistance 10/8/2022

Negative trading succeeded in controlling the movements of the pound sterling against the US dollar after the strong resistance level published during the previous analysis at 1.2130 succeeded in stopping the pair’s bullish movements and forced it to retreat again to visit the required retest target of 1.2065.

Technically and carefully considering the 4-hour chart, we find clear negative pressure from the simple moving averages, which comes in conjunction with the loss of bullish momentum on the 4-hour time frame.

Therefore, with the pair continuing to move below 1.2130, the bearish scenario remains the most preferred, knowing that the confirmation of breaking 1.2065 increases and accelerates the strength of the daily bearish trend, waiting for 1.2000, and losses may extend later to visit 1.1965.

Only from above the return of the trading stability and stability above the resistance as mentioned earlier pushes the price to touch 1.2175 and 1.2230 initial targets.

Note: CPI figures are due during the US session, which has a high impact; and may lead to high price volatility.

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: 1.2045	R1: 1.2130
S2: 1.2000	R2: 1.2175
S3: 1.1950	R3: 1.2230