Pound Hits Resistance and Negativity in Sight

The pound sterling made positive attempts against the US dollar, to hit its highest level during the last session’s trading at 1.3925.

On the technical side, today, we tend to be negative in our trading, relying on trading remaining below the aforementioned resistance level represented by the 50-day moving average, coinciding with the RSI gaining bearish momentum over short intervals.

Therefore, the bearish scenario will remain valid and effective targeting 1.3801 / 1.3800 as the first target, and breaking the last will lead the pair to continue declining towards 1.3775.

The suggested scenario depends on trading remaining below 1.3925, and a breach of it is capable of foiling our bearish expectations, and we may witness a slight bullish slope targeting 1.4000 before retreating again.

S1: 1.3805	R1: 1.3925
S2: 1.3740	R2: 1.3990
S3: 1.3680	R3: 1.4050