Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Yesterday, the British pound experienced a significant decline against the US dollar, reaching the designated target level of 1.2300 and hitting a low of 1.2300.
From a technical perspective today, the Stochastic indicator is attempting to show positivity, albeit limited due to overselling conditions. Meanwhile, the 50-day simple moving average continues to support the overall bearish trend in daily prices.
As such, the potential for further downward movement persists, contingent upon a break below the psychological support level at 1.2300. Such a development would likely pave the way for a visit to 1.2265 as the initial target. It’s crucial to monitor this level closely, as a breach could amplify and accelerate the downward momentum, potentially leading to a direct descent towards 1.2210.
On the contrary, if the price consolidates above the resistance at 1.2395, confirmed by at least an hour candle closure, it could invalidate the aforementioned bearish scenario. In such a case, we may observe a retest of the resistance at 1.2440.
Warning: Today’s trading may be influenced by Jerome Powell’s speech, Governor of the Federal Reserve, as well as the release of the monthly retail sales index from the United Kingdom. Therefore, we may experience significant price fluctuations.
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