Pound Continues to Gain

The pound sterling managed to achieve strong gains against the US dollar, to begin attacking the psychological barrier of 1.3700. On the technical side, with the pair’s success in confirming the breach of the 1.3630 resistance level, which has now turned into a support level, in addition to the positive stimulus coming from the 50-day moving average.

This increases the probability of continuing gains, given that the breach of 1.3715 extends the pair’s gains, opening the way directly towards the next official leg of 1.3750 / 1.3760.

Activating the bullish scenario requires stability above 1.3620, and breaking it is able to negate attempts to rise, and the bearish corrective trend will return to control the pair’s moves with the first target of 1.3530.

S1: 1.3620	R1: 1.3715
S2: 1.3565	R2: 1.3755
S3: 1.3525	R3: 1.3810