GBP suffers huge losses, all eyes on BoE 21/9/2023

The British pound suffered significant losses yesterday within the expected negative outlook during the previous technical report, touching the official targets, reaching the last stop of 1.2310, recording its lowest level during early trading of the current session, 1.2304.

On the technical side, by looking at the 240-minute time frame chart, we find that the pair achieved a strong break of the 1.2380 support level, negative pressure on the simple moving averages, and clear negative signals on the relative strength index.

Therefore, we maintain our negative expectations, provided that we witness a break in the support floor of the psychological barrier 1.2300, which will facilitate the task required to visit 1.2275, the first target, and then 1.2230.

Only from above will the price cross upwards and consolidate again above the psychological barrier resistance of 1.2400. The proposed scenario will be cancelled immediately and the pair will recover to retest 1.2465 and 1.2500.

Note: Risk level may be high today.

Warning: Today we are awaiting high-impact economic data issued by the British economy: the Monetary Policy Committee’s vote on interest rates, the interest rate decision, and the monetary policy summary. We are waiting for the “Unemployment Benefits” indicator from the United States of America, 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: 1.2275	R1: 1.2390
S2: 1.2230	R2: 1.2465
S3: 1.2160	R3: 1.2510