GBP gains against USD 9/6/2023

Positive trades dominated the movements of the pound sterling against the US dollar yesterday to start activating the alternative bullish scenario, in which we relied on the breach of 1.2740, explaining that breaching it would immediately stop any downward movements. The pair would begin to recover with the target of 1.2510, and the gains would extend later towards 1.2550, recording its highest level at 1.2564.

On the technical side, we tend to be positive in our trades, but with caution, relying on the confirmation of the breach of the strong resistance 1.2470, which turned into a support level, in addition to the positive impulse coming from the simple moving averages that support the bullish price curve.

Therefore, the bullish bias is the most likely, targeting 1.2595 as a first target and then 1.2645 as a next station, as long as the pair’s movements are stable above 1.2470.

Trading stability below 1.2470 will stop the suggested bullish scenario and put the pair under negative pressure, to retest 1.2390.

Note: Stochastic is around overbought areas, and we may witness some fluctuation until we get the required daily trend.

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: 1.2470	R1: 1.2595
S2: 1.2390	R2: 1.2645
S3: 1.2340	R3: 1.2720