GBP suffers strong losses against the USD 22/8/2022

Strong negative trades dominated the pound against its American counterpart within the expected bearish path, touching our first awaited target during the previous technical report at 1.1840, to record the pair’s lowest level at 1.1790.

Technically, with the negative pressure of the simple moving averages, the pair successfully broke the 1.1840 support-into-resistance and the bearish technical structure that supports the possibility of a drop.

Therefore, this encourages us to maintain our negative outlook, knowing that the decline below 1.1800 facilitates the task required to visit 1.1765, and then 1.1700 next awaited station, its bearish targets may extend later towards 1.1620 unless we witness any trading again above 1.1910.

Settling above 1.1910 leads the pair to form an ascending attack that aims to retest 1.1990 initially.

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: 1.1765	R1: 1.1910
S2: 1.1705	R2: 1.1990
S3: 1.1620	R3: 1.2065