GBP trying to recover 17/5/2022

The British pound against the US dollar reversed the expected bearish trend during the previous analysis, touching the stop-loss order at 1.2310, and consolidating above 1.2310, recording the highest price at 1.2344. As a reminder, we mentioned in yesterday’s report that we are awaiting the listening session for the inflation report, and we may witness high volatility in the pair’s movements.

Technically, and by looking at the 4-hour chart, we notice that the simple moving averages are trying to hold the price from above to resume the bullish bias and stabilise intraday trading above the resistance level of 1.2310.

The possibility of an upward bias in the coming hours is a possible scenario, and the pair may target 1.2380/1.2375, the next station whose ascending targets may extend towards 1.2410 before retracing. Note: the aforementioned bullish bias does not contradict the general bearish trend, whose initial targets are around 1.2175, once 1.2250 is broken. Note: the level of risk may be high.

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: 1.2255	R1: 1.2380
S2: 1.2175	R2: 1.2430
S3: 1.2130	R3: 1.2510