GBP breached the descending channel’s resistance 14/2/2023

The British Pound is repeating attempts to rise against the US dollar once again after succeeding over several consecutive sessions in establishing a good support base around the psychological barrier of 1.2000.

On the technical side, the GBPUSD pair witnessed a bullish tendency, and it now settled around its highest level during the morning trading of today’s session at 1.2147; with careful consideration of the 240-minute chart, we find that it has surpassed the resistance of the bearish channel at 1.2130, accompanied by the return of the Simple Moving Average 50. Hence, a day to hold the price from below is motivated by the positive signals from the RSI.

We may witness a bullish bias in the coming hours, its first target is 1.2185, and the price must be closely monitored around the target level because the breach of a catalyst factor enhances the chances of the bullish tendency continuing to visit 1.2230.

Only from below, the return of trading stability below 1.2065 renews the chances of the bearish trend returning, to be waiting for touching 1.2000, which is the key to protecting the bullish bias, and breaking it increases and accelerates the strength of the bearish trend, to be waiting for 1.1940.

Note: Markets are awaiting high-impact data issued by the US economy, “US inflation data/consumer price index”, and we may witness high price fluctuations at the release.

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: 1.2065	R1: 1.2185
S2: 1.1990	R2: 1.2230
S3: 1.1945	R3: 1.2310