Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The pound sterling exhibited positive trading against the US dollar, benefitting from support around the 1.2710 level and reaching its highest point at 1.2785.
In today’s technical analysis, a positive outlook is favored, based on the bullish technical structure evident on the 4-hour time frame chart. This positivity is reinforced by trading stability above the previously breached resistance, now acting as a support at 1.2710. The 50-day simple moving average adds further positive momentum to the scenario.
Therefore, the most likely scenario for the day is an upward trend, with the first target at 1.2810. Breaking this level could strengthen the pair’s gains, opening the path towards 1.2845 and 1.2870.
On the downside, a return to trading stability below 1.2710 would negate the proposed scenario, putting the pair under significant negative pressure. In such a case, the focus would shift to retesting 1.2650 and 1.2610.
Warnings:
- High-impact economic data is expected from the American economy today, including the “monthly core producer prices” and the “monthly producer price index.” Additionally, the “monthly gross domestic product” indicator from the United Kingdom is anticipated, potentially leading to increased volatility during the news release.
- The risk level is deemed high, and traders are advised to exercise caution, especially considering potential market reactions to geopolitical tensions.
A cautionary note is warranted as the risk level is deemed high, underscoring the importance of vigilance in the current market conditions.
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