GBP trying to gain additional momentum 18/10/2023

The British pound retested the strong support level at 1.2130, forcing it to rebound toward the strong resistance level of 1.2220.

On the technical side today, we notice the Stochastic indicator’s attempts to overcome the current negativity and gain additional momentum, in addition to the attempts of the Relative Strength Index to obtain positive signals.

We tend to go higher but would prefer to witness a breach of the strong resistance level 1.2220. This motivating factor increases the possibility of touching 1.2270 and 1.2290, respectively, and the targets may extend later towards 1.2320.

Only from below, the price sneaking below 1.2150, and most importantly 1.2130, can thwart the proposed scenario and put the pair under negative pressure again, with a target of 1.2100 and 1.2070.

Note: The stochastic indicator is near overbought areas, and we may witness some fluctuation before obtaining the official direction.

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: 1.2150	R1: 1.2235
S2: 1.2100	R2: 1.2270
S3: 1.2070	R3: 1.2320