Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The pound sterling declined significantly against the US dollar yesterday, as we expected, after the pair hit the pivotal resistance level posted at 1.2820, forcing the pair to retreat quickly, touching the first target 1.2695, recording its lowest level at 1.2666.
On the technical side today, we tend to be negative in our trading, relying on the continuation of the negative pressure coming from the simple moving averages that support the daily bearish price curve, in addition to confirming the breach of the 1.2720 support level, which is now transformed into the 50.0% Fibonacci correction.
Therefore, the bearish trend remains active, targeting 1.2630, the official expected target, and we are satisfied with this target only, due to its importance to the general trend in the short term.
Only from above, the price’s consolidation above the pivotal resistance 1.2820 invalidates the activation of the bearish scenario completely, and the pair recovers temporarily as we await a retest of 1.2850 & 1.2880.
Note: The level of risk is high and not commensurate with the expected return.
Note: Today, we are waiting for high-impact economic data issued by the US economy, “Producer Price Index,” and “Initial Consumer Confidence”, and from England, we are waiting for the “Gross Domestic Product” indicator, and we may witness high volatility in prices.
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: |