Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The British pound incurred noticeable losses against the US dollar within the expected negative outlook during the last analysis, heading to touch the official target price station at 1.2505, recording its lowest level at 1.2460.
Technically, and carefully looking at the 4-hour chart, we notice the continuation of the negative pressure coming from the 50-day simple moving average, which forms an obstacle in front of the pair and the clear negative signs on the 14-day momentum indicator.
Therefore, the bearish scenario will remain the most preferred. Knowing that the decline below 1.2460 facilitates the task required to visit 1.2420, a first target, and breaking it puts the pair under strong negative pressure to visit 1.2360.
To remind you that activating the bearish scenario suggested above depends on the stability of intraday trading below 1.2520 and, most importantly 1.2570.
Consolidating above 1.2580 leads the pair to recover temporarily to retest 1.2680.
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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