GBP is waiting for a new signal to move 31/1/2024

The pound is currently experiencing a lateral price range, confined above the support floor of 1.2650 and below the main resistance of 1.2720.

Examining the 240-minute time frame chart, the pair is holding below the simple moving averages, with the Stochastic indicator losing upward momentum.

Despite the negative indicators, careful monitoring of the pair’s price behavior is crucial, given the ongoing consolidation between the mentioned support and resistance levels. The following scenarios could unfold:

1. Downward Scenario: A clear break below the 1.2640/1.2650 support floor is needed to establish a downward trend. This breakthrough could pave the way for a visit to 1.2600 and 1.2560, respectively.
2. Upward Scenario: An upward trend relies on the pair’s ability to consolidate above the pivotal resistance of 1.2730. In this case, the pair may recover towards 1.2760 and 1.2830.

Cautionary Note: Today, high-impact economic data is expected from the American economy, including changes in private non-agricultural sector jobs, the interest rate, the Federal Reserve Committee statement, and the press conference of the Chairman of the Federal Reserve. Sharp price fluctuations are likely during the news release.

A cautionary note is warranted as the risk level is deemed high, underscoring the importance of vigilance in the current market conditions.

S1: 1.2640	R1: 1.2730
S2:  1.2600	R2: 1.2760
S3: 1.2560	R3: 1.2800