GBP trying to recover 8/6/2023

The pound’s movements witnessed attempts to recover against the US dollar, temporarily nullifying the expected negative outlook, in which we relied on trading stability below 1.2470, explaining that the price’s consolidation above 1.2470 will immediately stop attempts to retreat, and we await touching 1.2510, recording its highest level at 1.2500.

From a technical point of view, the pair collided with the resistance level of the psychological barrier 1.2500, which forced it to trade negatively, to witness the current movements stabilizing again below 1.2470 accompanied by the negativity of the stochastic indicator, and on the other hand, we find the simple moving average 50 days trying to push the price to the upside, and it meets near 1.2440 and adds more to it. Power.

We tend to be negative, but it is better to close at least an hourly candle below 1.2430, as this will facilitate the task of visiting 1.2380, and breaking it as a signal to continue the decline towards 1.2340, the next station.

To remind you that the return of trading stability above the strong resistance of 1.2470 will immediately stop any downward movements. The pair will begin to recover with the target of 1.2510, and the gains will extend later towards 1.2550.

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: 1.2390	R1: 1.2500
S2: 1.2330	R2: 1.2550
S3: 1.2290	R3: 1.2605