British Pound Breaks Support

The British Pound was able to reach the required downside target mentioned in the previous analysis at 1.2920, recording a low of 1.2880.

Technically, we are biased towards the negative side, given the pair’s success in confirming the breach of the support level of 1.2970, which is now turned into resistance, as the pair continues to get negative pressure from the 50-day moving average, which meets around 1.2970. All this puts the price under strong negative pressure targeting 1.2850, bearing in mind that the recent break extends the pair’s losses opening the doors towards 1.2790.

Returning to consolidation again above 1.2970, and the most important 1.3000, will negate the suggested scenario, and we may witness a slight bullish bias aimed at re-testing the 1.3080 resistance level.

S1: 1.3000	R1: 1.2850
S2: 1.3085	R2: 1.2790
S3: 1.3140	R3: 1.2710