GBP outperforming USD 23/1/2023

The pound touched the official bullish target during the last report, at 1.2440, surpassing the target to record its highest level at 1.2448.

On the technical side today, by looking at the 4-hour chart, we note that the pair continued to receive positive signs from the 50-day simple moving average, which meets around the support level of 1.2330 and adds more strength to it, and this coincides with the stability of the relative strength index above the mid-line 50.

Therefore, the possibility of continuing the rise is still intact, knowing that the price consolidation above 1.2470 extends the gains of the British pound against its American counterpart, opening the door towards 1.2515 as the next station.

A decline below 1.2330 postpones the chances of a rise, and we are witnessing a retest of 1.2290 before any attempts to rise.

Note: Stochastic is around overbought 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: 1.2355	R1: 1.2470
S2: 1.2290	R2: 1.2515
S3: 1.2240	R3: 1.2580