GBP: Under strong selling 29/8/2022

The pound started its first weekly trading with heavy losses under pressure from the rise of its American rival, within the expected descending official path during the analysis issued on last Friday, surpassing the required target of 1.1720, stable around its lowest level during the early trading of the current session, 1.1650.

Technically, with the pair’s success in confirming the breach of the 1.1740 support line, the pair continues to obtain strong negative pressure from the simple moving averages, accompanied by the stability of the 14-day momentum indicator below the mid-line 50.

This encourages us to maintain our negative outlook, targeting 1.1600 as a first target, knowing that trading below the mentioned level leads the pair to complete the intense selling operations to visit 1.1560, which requires the price to remain below the previously broken support at 1.1740.

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: 1.1560	R1: 1.1820
S2: 1.1480	R2: 1.1980
S3: 1.1320	R3: 1.2070