Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Negative trading dominated the movements of the pound sterling against the US dollar after successive sessions of rise after it found a strong resistance level of around 1.2330, which forced the pair to trade negatively.
As a reminder, we indicated during the previous technical report that sneaking below 1.2240 postpones the chances of a rise but does not cancel them, and we may witness them. Retesting 1.2200 and 1.2175 to hit the downside target, recording 1.2175, replacing the buy position.
On the technical side today, by looking at the 4-hour chart, we find that the 50-day simple moving average has begun to exert negative pressure on the pair, and this comes in conjunction with the clear negative signs on the 14-day momentum indicator.
From here, with intraday trading remaining below 1.2260 and, more importantly, 1.2300, we may witness a bearish tendency during today’s trading session, knowing that breaking 1.2175 will facilitate the task required to visit 1.2140 and 1.2110, respectively.
Only from above will the return to trading stability once again above the psychological barrier resistance of 1.2300 nullify the activation of the proposed bearish scenario and the pair will return to the upward trend with targets starting at 1.2390 and extending towards 1.2420.
Note: Stochastic is around overbought areas and we may witness some fluctuation until we obtain the desired direction.
Note: Today we are awaiting high-impact economic data issued by the US, “Preliminary Consumer Confidence Reading – Michigan,” and from the UK, we are awaiting a speech by the president of the Bank of England, and we may witness high fluctuation in prices at the time 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.
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