Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The British pound reversed the upward trend, as we expected during the previous report, after it failed to stabilize over the resistance level 1.2250. As a reminder, we indicated that trading stability below 1.2150/1.2160 with the closing of at least an hour candle will stop attempts to rise and lead the pair to the official bearish path, with goals that begin—at 1.2120 and 1.2070, recording its lowest level at 1.2070 during early trading of the current session.
Technically, we tend toward negativity in our trading, relying on the stability of intraday trading below the previously broken support that has been transformed into a resistance level of 1.2170, in addition to price stability below the simple moving averages that continue to put negative pressure on the price from above.
Therefore, the downward trend is the most likely during the day, targeting 1.2020 as the next target, and breaking the mentioned level extends the pair’s losses, so we are waiting for 1.1970 as the next stop as long as trading remains stable below 1.2170.
The price’s consolidation above 1.2170 invalidates the activation of the proposed scenario, and the pair recovers, heading to retest 1.2270.
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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