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The British pound jumped against its American counterpart, achieving solid gains, as we expected, touching the target price station last Friday at 1.1640, recording its highest level during the morning session of today’s session at 1.1652.
Technically and carefully looking at the 240-minute chart, we notice the price stability above the 50-day simple moving average, which meets near the 1.1550 support level and adds more strength to it, in addition to breaking the descending price channel’s resistance as shown on the chart.
Therefore, the opportunity to complete the corrective ascension is still valid, knowing that the breach of 1.1650 facilitates the task required to visit 1.1675, and then 1.1740 official stations are awaited.
The decline below 1.1550 and most importantly 1.1520 stops the bullish correction. It puts the price under negative pressure to retest the strong demand area of 1.1435 before attempting to rise again.
Note: Uk GDP data is due today with a signifcant impact. It may cause volatility.
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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