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The British pound declined noticeably yesterday, within the scenario of retesting the support, as we expected, touching the official target station at 159.20, recording its lowest level at 157.90.
Technically, and with careful consideration of the 4-hour chart, the pair found a strong support floor around 158.50, which forced it to form a bullish bounce and the positive stimulus coming from the 50-day moving average returned to carry the price from below.
We may witness a bullish bias in the coming hours, with its initial target of 160.50, considering that the breach of the mentioned level enhances the chances of rising to visit 161.20 as long as the price is stable above 158.50.
The return of trading stability below 158.50 will stop the expected bullish bias and put the price under negative pressure again, with a target of 157.85. Losses may extend later to visit 157.10.
Note: The risk is High.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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