GBP is testing resistance and negativity 24/5/2023

The current movements of the pound-dollar pair show some bullish inclination, taking advantage of touching the strong support floor at 1.2370, which forced the pair to achieve some gains, to see the current movements stabilize around 1.2435.

On the technical side, the stochastic indicator started to provide negative signals, to start losing bullish momentum gradually, supporting the possibility of a decline again, in addition to forming the 50-day simple moving average, which impedes the pair and meets near the resistance level of 1.2480, adding more strength to it.

We hold onto our negative expectations, targeting 1.2390, and breaking it will increase and accelerate the strength of the bearish correction, opening the door for recording losses that start at 1.2340, unless we witness the price consolidation above 1.2480.

Note: Today we are awaiting highly sensitive economic data issued by the US economy, “the results of the Federal Reserve Committee meeting,” the speech of the US Treasury Secretary, and we are awaiting “inflation” data from the United Kingdom and the talk of the “Governor of the Bank of England,” in addition to the report issued by the International Energy Agency regarding Oil stocks, and we may witness high volatility in prices 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: 1.2390	R1: 1.2465
S2: 1.2340	R2: 1.2495
S3: 1.2315	R3: 1.2540