GBP: Breaks through resistance 9/1/2023

After several successive sessions of decline, during which the pound-dollar pair was able to achieve negative targets, reaching the last target at 1.1860, posting its lowest level at 1.1840, to start an upward rebound as a result of the weakness of the USD, explaining that the breach of 1.2035 leads the pair to retest 1.2080, recording the highest level at 1.2148 during the early trading of the current session.

On the technical side, today, we find the pair settled above 1.2080, accompanied by the positive impulse of the 50-day simple moving average, which returned to hold the price from below, in addition to the pair’s success in breaching the resistance of the bearish channel.

We tend to be positive, targeting, knowing that consolidation above 1.2150 is a catalyst that leads the pair to extend its gains towards 1.2200, then 1.2245, respectively, and the gains may extend later to visit 1.2300.

Consolidation of trading below 1.2070 leads the pair to the downside path again, as we await a retest of 1.1950 before resuming the rise again.

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: 1.1940	R1: 1.2245
S2: 1.1735	R2: 1.2350
S3: 1.1630	R3: 1.2550