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The pound sterling against the US dollar faced resistance at the pivotal level of the psychological barrier, 1.2700, resulting in negative pressure that prompted downward movements. Intraday fluctuations stabilized near the lowest levels observed during early trading, approximately around 1.2665.
Today’s technical analysis, based on the 240-minute timeframe chart, indicates negative signals from the 14-day Momentum indicator, coinciding with discernible bearish indicators on the Stochastic indicator.
Our bias leans towards negativity, but we await a decisive breach of the support level at 1.2650. Such a breach would facilitate a potential move towards the initial target at 1.2600, with further losses possibly extending to 1.2565.
It is crucial to note that consolidation of the price above 1.2690, and particularly above 1.2700, would prompt a swift recovery for the pair. In such a scenario, upward momentum may carry the pair towards 1.2730 and 1.2770, respectively.
A word of caution: Today’s trading environment is influenced by the impending release of high-impact economic data from the American economy, particularly the preliminary reading of the gross domestic product – quarterly. Consequently, heightened volatility is anticipated at the time of the news release.
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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