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The British pound jumped against the US dollar, supported by the Bank of England’s decision to raise interest rates, in addition to the pair building on a pivotal support floor published during the previous analysis, at 1.2035, which forced the pair to rebound upwards between 1.2035 and 1.2245. We indicated that the overshoot and cohesion above 1.2245 led the pair to recover with goals starting at 1.2335 to record the highest level at 1.2405.
Technically, the pair collided with the resistance level of the psychological barrier 1.2400, which failed to stabilize above it. We find signs of negativity that started to appear on the stochastic indicator, which gradually lost the bullish momentum, in addition to the RSI sending negative signals.
Therefore, there is a possibility of a bearish bias in the coming hours, targeting a retest of 1.2180, a first target, knowing that breaking it constitutes a negative pressure factor on the pair, so we will wait for 1.2085 as long as the price is stable below 1.2400.
Trading above 1.2400 can thwart the proposed scenario, and we are witnessing the pair’s visit to 1.2450 areas and extending towards 1.2540.
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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