Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The British pound has made substantial gains against its American counterpart, having successfully breached the primary resistance at the 1.2300 price point. This success propelled the pair towards 1.2420, marking its peak at 1.2505.
Technically speaking, our trading outlook leans towards the positive yet cautious, based on the prominent positive signals from the 14-day momentum indicator. This optimism is bolstered by the pair’s sustained positive support from the simple moving averages.
From this standpoint, with daily trading persisting above the surmounted resistance of 1.2340, an upward trend is the favoured scenario. However, this is contingent upon a robust and clear breach of the psychological resistance barrier at the 1.2500 level, which would amplify and accelerate the strength of the daily upward trend. Our projections then place the pair at 1.2580 and subsequently at 1.2640.
It’s important to note that a drop below 1.2420 would instantaneously halt the upward trajectory, redirecting the pair towards retesting the fundamental support level at 1.2340.
A word of caution: We anticipate high-impact economic data releases today from both the US economy, including the Producer Price Index, Retail Sales, and the New York State Manufacturing Index, and from the UK economy, with the Annual Consumer Prices. These data releases may result in significant price fluctuations.
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: |