GBP breaks through resistance 13/3/2023

The pound sterling achieved strong gains against its American counterpart to begin the first trading of this week, with a noticeable increase, recording its highest level during the Asian session for today’s session at .12141.

On the technical side today, we tend to be positive in our trading, depending on the pair’s breach of the bearish channel’s resistance, as shown on the 4-hour chart, and the pair continues to receive a positive impulse from the 50-day simple moving average.

Therefore, the bullish bias is likely during today’s trading session, with daily trading remaining above 1.2040, targeting 1.2200 as a first target, and breaching it extends the pair’s gains towards 1.2290.

Trading stability and price stability below 1.2040 invalidates the activation of the scenario suggested above, and forces the pair to retest 1.1970.

Note: Stochastic is around overbought areas, and we may witness some fluctuation until we get the official trend.

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: 1.1970	R1: 1.2205
S2: 1.1825	R2: 1.2290
S3: 1.1740	R3: 1.2435