Pound Benefiting From Support

We committed to the intraday neutrality during the previous analysis due to the conflicting technical signals, Noting that activation of buy orders depends on confirming the breach of 1.3800, in order to enhance the chances of a rise towards 1.3845, so that the pair succeeded in touching the published target, reaching its highest level at 1.3844.

Technically speaking, and with a closer look at the chart, we find the pair has achieved success in building on the strong support floor at 1.3770, as we find the 50-day moving average continues to hold the price from the bottom.

Thus, the bullish bias is likely today, continuing towards the second target of the previous analysis at 1.3880/1.3885, and the gains may extend to a visit of 1.3930. From the bottom, the return of trading to stability again below 1.3760, postponing the bullish chances, and we may witness a re-test of 1.3710 / 1.3700.

Note: the breach of 1.3710 will lead the pair to enter a strong bearish wave, the initial target of which is 1.3610.

S1: 1.3760	R1: 1.3885
S2: 1.3675	R2: 1.3930
S3: 1.3630	R3: 1.4010