GBP: touches targets, negativity persists 6/1/2023

The British Pound declined significantly yesterday, within the expected bearish path in the previous report, after the resistance above levels at 1.2080 formed a negative pressure factor that forced the pair to touch the target of 1.1900, recording 1.01905.

On the technical side, the work is regular within the bearish channel, accompanied by the negative pressure of the 50-day simple moving average, which meets near the resistance level of 1.2030 and adds more strength.

From here, with trading steadily below the previously broken support 1.1990, the bearish scenario remains valid and effective, provided that we witness a break of 1.1900 to target 1.1860 as the first target and then 1.1800 as a next price station, as long as trading is stable below 1.2035.

Consolidation above 1.2035 leads the pair to recover temporarily, to retest 1.2080 initially.

Note: Today, we are awaiting high-impact data from the United States of America, “American jobs data, average wages and unemployment rates,” and we may witness high volatility at the time of the news.

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: 1.1860	R1: 1.2035
S2: 1.1800	R2: 1.2145
S3: 1.1690	R3: 1.2210