GBP trying to break the major resistance 30/8/2023

Positive attempts by the British Pound to rise against the US dollar, after it succeeded in building on the support level of 1.2560, to start attacking the main resistance level published during the previous technical report 1.2630, explaining that it is a prerequisite for continuing the rise.

The pair found a solid support floor near 1.2560 on the technical side, forcing it to rebound to the upside. The current movements are witnessing a retest of the pivotal resistance 1.2630, at 61.80% correction. The RSI continues to defend the return of the bullish direction, with Stochastic’s attempts to eliminate the current negativity.

We tend to be positive, provided that we witness the price consolidation above the main resistance 1.2630, and that enhances the chances of rising towards 1.2675/1.2665 as a first target and extends the gains to visit 1.2730, the 50.0% correction.

Activating the suggested scenario requires daily trading to remain above 1.2575, and breaking it will immediately stop attempts to climb. The main bearish trend will return to control the pair’s movements, targeting 1.2520.

Note: Today, we are awaiting high-impact economic data issued by the US economy “ADP Employment Change” and “the preliminary reading of the GDP” quarterly, and we may witness a high fluctuation in prices at the time of the news release.

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: 1.2575	R1: 1.2665
S2: 1.2520	R2: 1.2720
S3: 1.2470	R3: 1.2760