Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The British pound extended its decline against the US dollar, aligning with the anticipated bearish technical context. It reached the first official target at $1.2550, hitting a low of $1.2535.
Technical Analysis Insights:
Examining the 4-hour chart, negative pressure is evident from the 50-day simple moving average. Additionally, intraday trading has maintained stability below the psychological barrier resistance level of $1.2600, as well as below the main resistance level of $1.2650.
Bearish Outlook with Caution:
The prevailing technical indicators lean towards negativity, albeit with caution. The next target lies at $1.2500, serving as an initial official station. Confirmation of a break below this level would further extend the pair’s losses, potentially opening the path towards $1.2450.
Reversal Scenario:
However, it’s crucial to monitor the possibility of an upward reversal. A move above $1.2600, accompanied by the consolidation of price with at least an hour candle, would invalidate the bearish scenario. In such a scenario, the pair could aim for resistance levels at $1.2650 and $1.2690, respectively.
Warnings Amid Economic Data Releases:
Traders should exercise caution due to high-impact economic data releases expected from both the British and US economies. These include monthly gross domestic product figures and indicators such as retail sales, unemployment benefits, and the New York State manufacturing index. The release of these data points may lead to increased price fluctuations in the currency markets.
Risk Level and Confirmation:
It’s important to note that the current trend requires confirmation, and the risk level remains high. Traders should await confirmation signals before taking significant positions, considering the potential volatility in the market.
By staying attuned to critical levels and potential reversal scenarios, traders can navigate the fluctuations within the pound sterling-US dollar pair with heightened precision and confidence.
| S1: |