The British Pound is Heading Down

The British pound continued to decline against the US dollar within the expected bearish path during the previous report, which relied on price stability below the strong demand point 1.3410, gradually approaching the target price point 1.3300, recording the lowest 1.3345.

On the technical side today, and by looking at the 4-hour chart, the stochastic continues to lose the bullish momentum gradually and continue to move below the 50-day moving average, which meets around 1.3410. The previously broken support adds more strength to it.

Therefore, we expect the decline to target 1.3300 next official station. However, it should be noted that breaking it puts the British pound under intense negative pressure, with an initial price target of 1.3270.

To remind that activating the above suggested bearish scenario depends on the stability of daily trading below the 1.3440 resistance level. Its breach leads the pair to move within a temporary bullish path that aims to retest 1.3480.

S1: 1.3370	R1: 1.3440
S2: 1.3345	R2: 1.3510
S3: 1.3300	R3: 1.3570