GBP: starts pressing support 21/9/2022

Negative trades dominated the movements of the pound sterling against the US dollar after it found a strong resistance level around 1.1470, explaining that it represents the first condition for a further rise to fail to breach it and return to retest 1.1375.

Technically, today, the Pound Sterling begins to press on the support level of 1.1370, accompanied by the negativity of the simple moving averages and the return of movements within the pivots of the descending price channel.

Despite the technical factors that indicate the possibility of a drop, we prefer to witness a clear break of the 1.1370 support floor to facilitate the task required to visit 1.1330 and then 1.1295 next price stations as long as the price is intraday stable below 1.1400.

Rising above 1.1435 leads the pair to retest 1.1470, and the price behavior must be carefully monitored around this level because its breach forces the pair to enter within an upward correction that targets 1.1500 and may extend towards 1.1540

Note: We await the Fed statement and outlook, followed by a press conference. They have a significant impact, and we may witness high volatility in prices, which requires attention to the upcoming moves so that all scenarios are likely to occur.

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: 1.1330	R1: 1.1435
S2: 1.1295	R2: 1.1500
S3: 1.1230	R3: 1.1540