GBP building on support 14/12/2023

The British pound has established a strong support base around the previous target level mentioned in the last technical report at $1.2500. This support led to an upward rebound, propelled by the decline of the American dollar. As stated in the previous report, the consolidation of the price at $1.2620 would immediately halt the bearish scenario, ushering in a positive trading session with a target of $1.2650, reaching a high of $1.2653.

From a technical standpoint today, the pair is momentarily stable above the support level of $1.2550, receiving additional support from the 50-day simple moving average, indicating a potential for upward movement.

There exists a possibility of an ascent as long as trading remains above $1.2550, particularly upon breaching $1.2650. This breach would act as a motivating factor, enhancing the likelihood of an upward move towards $1.2700 as the initial target, followed by $1.2750.

A breach below $1.2550 would exert negative pressure on the pair, leading to a trading session in negative territory, with targets beginning at $1.2445 and $1.2390.

Cautionary Note: The risk level is high. Today, significant economic data is expected from the British economy, including the Monetary Policy Summary, Interest Rate Decision, and Monetary Policy Committee vote on interest rates. Additionally, Eurozone economic data includes Interest Rate Decision, ECB Monetary Policy Statement, and ECB President’s press conference. From the United States, the focus is on US retail sales.

S1: 1.2550	R1: 1.2700
S2:  1.2445	R2: 1.2750
S3: 1.2390	R3: 1.2850