GBP: stable below the moving average 4/1/2023

We adhered to intraday neutrality during the previous technical report, explaining that we are awaiting confirmation of breaching the 1.2110 resistance level, considered one of the most critical directional keys, to ensure continuing the upward path. However, the pound failed to breach it and re-settled below 1.2035, explaining that this is a sign of negative pressure that leads the pair to visit 1.1970, recording below Its level is 1.1900.

Technicals indicate the possibility of resuming the decline, relying on the negative pressure from the 50-day simple moving average, which meets around the resistance level of 1.2040 and adds more strength to it, in addition to stochastic losing bullish momentum.

The first bearish target is near the support level of the psychological barrier 1.1900, knowing that the decline below the mentioned level increases and accelerates the strength of the bearish daily trend as we await a touch of 1.1810.

The stability of intraday trading below 1.2045 is an important and basic condition for the decline. The most important is the consolidation below 1.2080, and breaching it invalidates the activation of the expected bearish scenario. The pair recovers with the first target of 1.2120 and 1.2175, respectively.

Note: the level of risk is high.

Note: The minutes of the Fed’s latest policy meeting are set to come out in the afternoon, and we may witness 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: 1.1895	R1: 1.2080
S2: 1.1805	R2: 1.2175
S3: 1.1710	R3: 1.2265