Noor Trends News, Technical Analysis, Educational Tools and Recommendations
In the previous technical report, we maintained a neutral stance due to the narrow trading range observed over several consecutive sessions, with the GBP/USD pair fluctuating between 1.2600 and 1.2650. We emphasized that an upward trend would necessitate a breach of the 1.2650 resistance level, potentially leading to gains towards 1.2695.
However, the British pound faced renewed pressure against the US dollar following the release of strong American inflation data, resulting in a decline to a low of 1.2573. Analysis of the 4-hour chart reveals negative pressure from the 50-day simple moving average, coupled with intraday trading stability below the psychological barrier at 1.2600 and the main resistance level at 1.2650.
We lean towards negativity, albeit cautiously, with an initial target set at 1.2550. A confirmed break below this level could extend the pair’s losses, opening the path towards 1.2500 before potential recovery attempts.
It’s important to note that a breakout above 1.2650, followed by price consolidation, would invalidate the proposed scenario, signaling a potential recovery towards 1.2740 initially.
Warning:
Today’s market activity may be influenced by high-impact economic data from the British economy, including the annual consumer price index and the Bank of England Governor’s speech. Expect heightened price volatility during these announcements. Additionally, the risk level is high, and traders should await confirmation of the expected trend before making trading decisions.
By staying attuned to critical levels and potential reversal scenarios, traders can navigate the fluctuations within the pound sterling-US dollar pair with heightened precision and confidence.
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