GBP advancing against USD 5/4/2023

The pound sterling successfully retested the pivotal support floor published during the previous technical report at 1.2270, to return to rise strongly within the expected bullish path, touching the first target 1.2400, recording its highest level at 1.2420.

Technically, today the current movements of the pair witness clear stability above 1.2320, accompanied by the continuation of the 50-day simple moving average, providing a positive impulse. This comes with clear positive momentum signs on the 14-day momentum indicator.

Therefore, we hold onto our positive outlook, continuing towards the second target of the previous report 1.2470. Its breach is a catalyst factor that might enhance the chances of touching 1.2520 and 1.2560, respectively.

From below, Trading stability below 1.2320 might force the pair to retest the pivotal support floor 1.2270 before attempting to climb again.

Note: The risk level is high.

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: 1.2420	R1: 1.2550
S2: 1.2340	R2: 1.2605
S3: 1.2300	R3: 1.2680