GBP repeats the chances of a cautious rise

Positive movements dominated the performance of the pound sterling against the US dollar as part of attempts to build on the 1.1185 support floor.

On the technical side today, and by looking at the 4-hour chart, we find the stochastic is trying to get positive crossover signals. This comes in conjunction with the momentum indicator’s attempts to get positive signals on short intervals.

We tend to be positive but with caution, knowing that the breach of 1.1280 is a catalyst that enhances the chances of a rally to touch 1.1350, and gains may extend later to visit 1.1465.

The return of stability to trading below 1.1185, and most importantly 1.1165, is leading the British pound to decline again against the US dollar towards 1.1030.

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: 1.1130	R1: 1.1350
S2: 1.1030	R2: 1.1465
S3: 1.0920	R3:  1.1565