GBP: Looking for extra momentum 10/1/2023

The pound sterling achieved remarkable gains against the US dollar within the expected positive outlook mentioned in the previous report, touching the first target at 1.2200, recording its highest level at 1.2210.

Technically, the positive impulse from the simple moving averages supports the possibility of a continuation of the rise, motivated by the clear positive signs on the stochastic in the 4-hour time frame.

With daily trading remaining above 1.210 support, the bullish scenario remains intact, targeting 1.2225 as the first target, taking into account that the breach of 1.2225 is a catalyst that enhances the chances of visiting 1.2280 as the next target.

Breaking the 1.2100 support floor will immediately stop the attempts to rise and put the pair under strong negative pressure, with its initial target at 1.2035.

Note: Today, we are awaiting the speech of Jerome Powell, Chairman of the Federal Reserve, and we may witness high price 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.

S1: 1.2100	R1: 1.2225
S2: 1.2035	R2: 1.2280
S3: 1.1980	R3: 1.2345