GBP is the best performer against the dollar 19/1/2023

The noticeably positive performance of the British pound against the US dollar yesterday, achieving the expected optimistic targets, reaching the last target of 1.2385, recording its highest level at 1.2436.

On the technical side, the simple moving averages hold the price from below, supporting the continuation of the upward direction, motivated by the positive signs from the RSI.

We notice some negative features on the stochastic that might push the pair to retest 1.2230 before rising again, knowing that retesting does not contradict the bullish daily trend, whose targets are around 1.2440 and extends later to visit 1.2500.

It should be noted that the decline below 1.2230 can thwart the continuation of the rise and lead the pair to visit 1.2120, the primary support for the current trading areas.

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: 1.2230	R1: 1.2440
S2: 1.2120	R2: 1.2545
S3: 1.2020	R3: 1.2650