Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The pound was able to activate the bullish scenario, as we expected during the technical report of the previous trading session, approaching by a few points from the published target 1.2810, recording its highest level at 1.2800, to return to trading with negativity, as a result of colliding with the resistance level of the psychological barrier, which forced the pair to retest the strong support 1.2720.
On the technical side today, and with closer look at the 4-hour chart, we find the 50-day simple moving average still protects the price from below, which comes in conjunction with the positive signs of stochastic, continuing to search for more momentum.
From here, with trading steadily above 1.2720, the support of 50.0% Fibonacci correction, there may be a possibility of visiting 1.2810 as the first target, noting that breaching it increases and accelerates the strength of the bullish bias, with a next target of 1.2830.
Closing an hourly candle below the support of 1.2720 50.0% Fibonacci correction can thwart the current upward attempts and lead the pair to the official bearish path, with an initial target of 1.2675, and later extends towards 1.2630 official stations.
Note: Today, we are waiting for high-impact economic data issued by the US economy and England, such as “Services and Manufacturing PMI”, and from Canada, later in today’s session, we are waiting for “Retail Sales” in addition to the summit of the “BRICS” group 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.
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