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The British pound made a significant leap, registering substantial gains against the US dollar by successfully breaching the psychological barrier resistance at 1.2400 and initiating an assault on the crucial resistance level of 1.2465.
From a technical perspective today, a positive trading outlook is favored, contingent on the intraday stability above the previously breached resistance and the key support level of 1.2400. This is supported by the return of the simple moving averages, providing a positive incentive.
Therefore, the pair’s successful penetration of 1.2465 would not only enhance but also accelerate the strength of the daily upward trend, paving the way for additional gains starting at 1.2490 and extending towards 1.2520.
However, a closure of at least an hourly candle below 1.2400 would diminish the prospects of a rise, though not entirely cancelling them. In this scenario, a retest of 1.2350 may precede any potential upward attempts.
A note of caution: The Stochastic indicator is hovering around overbought areas, suggesting the possibility of fluctuations until an official direction is established. Investors should remain vigilant and consider this factor in their decision-making process.
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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