GBP: needs to monitor price behavior 12/4/2023

The Sterling Pound could not break the strong support level at 1.2380, which forced it to maintain the bullish path, reaching its highest level at 1.2456.

Technically, we notice conflicting technical signals, and we find the 50-day simple moving average trying to push the price to the upside. But, on the other hand, negative features still dominate stochastic movements.

With conflicting technical signals, we prefer to monitor the price behavior until we get a signal that shows the direction more accurately to be in front of one of the following scenarios:

To get an upward trend, we need to see the price consolidating above 1.2440, and that might motivate the pair to achieve gains that start at 1.2490 and extend toward 1.2530.

The downside trend is confirmed by breaking the strong support floor 1.2380, with an hourly candle closing below it. From here, the negative pressure begins, targeting 1.2340 & 1.2300 initially, and the downside wave may extend toward 1.2260.

Note: The risk level is high.

Note: Today, we are waiting for high-impact economic data issued by the US economy: the results of the Federal Reserve Committee meeting, “consumer price index” and from the Canadian economy, we await ” the interest of the Bank of Canada and the press conference of the Bank of Canada” in addition to “the speech of the Governor of the Bank of England.” We may witness high volatility at the time of the news release.

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: 1.2380	R1: 1.2460
S2: 1.2345	R2: 1.2495
S3: 1.2300	R3: 1.2535