GBP building on the negative performance of USD

Positive trading dominated the movements of the pound sterling against its American counterpart yesterday, breaching the resistance level of 1.1185 to reach the highest level of 1.1380.

Technically and carefully considering the 4-hour chart, we find the pair stable above the simple moving average that supports the bullish price curve, coinciding with the positive momentum signs.

Therefore, the bullish bias is the most preferred during today’s session, knowing that the breach of 1.1330 is a catalyst that increases and accelerates the strength of the daily bullish trend, targeting 1.1445 first target. The upside targets may extend to visit 1.1575 initially.

Activating the suggested bullish scenario requires daily trading to remain above the previously breached resistance-into-support 1.1180.

Note: “US Retail Sales” is due today and may witness price fluctuation.

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.

S1: 1.1130	R1: 1.1445
S2: 1.0940	R2: 1.1575
S3: 1.0810	R3:  1.1770