GBP looking for additional stimulus 12/10/2023

The British pound continues to advance at the expense of its American counterpart, maintaining positive stability within the expected bullish context. It touches the first official station targeted during the previous technical report at the price 1.2330, recording its highest level of 1.2340.

On the technical side today, by looking at the 4-hour time frame chart, the pair continues to receive a positive stimulus from the 50-day simple moving average, which coincides with the continuation of positive signals on the 14-day momentum indicator.

There may be a possibility to continue the rise with confirmation of the pair breaching the resistance level of 1.1245. This motivating factor enhances the chances of touching 1.2380 as a next target and then 1.2410 respectively, noting that the stability of trading above 1.2275 and most importantly 1.2240 is a prerequisite for activating the proposed scenario.

Below 1.2240 and closing an hour candle below it postpones the chances of a rise but does not cancel them, and we may witness a retest of 1.2200 and 1.2175 before rising again.

Note: Stochastic is around overbought areas and we may witness some fluctuation until we obtain the desired direction.

Note: Today we are awaiting highly influential economic data issued by the American economy, the “Consumer Price Index,” and we may witness high volatility when the news is released.

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: 1.2275	R1: 1.2345
S2: 1.2240	R2: 1.2380
S3: 1.2200	R3: 1.2415