GBP confirms the breakout of the resistance 2/6/2023

Positive trades dominated the movements of the British pound against its American counterpart after it confirmed the breach of the pivotal resistance level of 1.2470, heading to touch the alternative scenario target of 1.2512, recording its highest level during the morning trading of the current session at 1.2542.

On the technical side today, looking at the 4-hour chart, we find a positive intersection of the Simple Moving Averages that returned to hold the price from above and is motivated by the positive signs from the RSI, which settled above the mid-line of 50.

From here, with daily trading steadfastly above the previously breached resistance, which turned it into the support level of 1.2445, the bullish trend is the most preferred during today’s session, targeting 1.2590/1.2580, an initial station whose positive targets may extend later to visit 1.2630.

Note: Today we are awaiting high-impact economic data issued by the US economy, “US jobs data”, “average wages” and US unemployment rates, and we may witness a high fluctuation in prices at the time of the news 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: 1.2445	R1: 1.2590
S2: 1.2350	R2: 1.2640
S3: 1.2295	R3: 1.2730