British Pound Reverses The Bearish Trend

The British pound reversed the expected downside trend mentioned in the previous analysis, touching the stop-loss order published yesterday at 1.3580. We indicated that surpassing the aforementioned level is capable of foiling the bearish scenario and we may witness an upward intraday path that aims to re-test the 1.3630 resistance level, to record the pair’s highest level at 1.3690.

On the technical side, today we find the 50-day moving average that has returned to hold the price from below, meeting around 1.3560 and adding more strength to it. This comes in conjunction with the clear positive signs on the RSI.

From here, with intraday trading above 1.3630 and in general above 1.3560, this increases the probability of continuing the upward to visit the first target of1.3745, and gains may extend later towards 1.3800.

Warning: the level of risk may be high today.

S1: 1.3560	R1: 1.3745
S2: 1.3440	R2: 1.3815
S3: 1.3370	R3: 1.3935