The British Pound Looking For Additional Momentum

The sterling made positive attempts against the dollar yesterday and started attacking the psychological barrier resistance 1.3200, but was unable to breach it yet.

Technically, looking at the 4-hour chart, we find that negative signs are emerging on the stochastic indicator, with the 50-day moving average still holding the price. We maintain our positive expectations, provided that the breach of 1.3220 / 1.3200 is confirmed, targeting 1.3265 as a first target, followed by 1.3315.

On the downside, returning to trade again below the support level of 1.3130 may negate the bullish scenario and putting the price under temporary negative pressure, whose initial target is to retest 1.3080 and may extend later towards 1.3040.

S1: 1.3130	R1: 1.3220
S2: 1.3080	R2: 1.3265
S3: 1.3040	R3: 1.3315