Noor Trends News, Technical Analysis, Educational Tools and Recommendations
During yesterday’s trading session, the British pound fluctuated, oscillating between upward and downward trends. The pound attempted to capitalize on the weakening US dollar and found support at the strong level of 1.2090, prompting an upward rebound towards 1.2190.
From a technical perspective, the simple moving averages have resumed supporting the price from below, providing a positive momentum. Additionally, the 14-day momentum indicator is showing clear positive signals.
Although there is a leaning towards positivity, confirmation of breaching the consolidation resistance level of 1.2200 is crucial. Achieving this breakthrough could pave the way for consolidating gains towards initial targets at 1.2220 and 1.2260, with the potential for further extension to 1.2320.
However, if the pair fails to breach the psychological barrier resistance of 1.2200 and retreats to trade below 1.2155, this would create negative pressure. In such a scenario, the pound could target 1.2120 and 1.2090 initially, requiring careful monitoring of these levels for traders and investors.
Please be aware that today, there is anticipation of high-impact economic data originating from the British economy, including the Bank of England Governor’s speech, the interest rate decision, the monetary policy summary, the monetary policy report released by the Bank of England, and the Monetary Policy Committee’s vote on interest rates.
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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