Pound Breaks Through Resistance

Notable gains made by the pound against the US dollar during the previous trading session, cancelling the negative outlook, as we expected, and touching the stop-loss order published in the previous analysis at 1.3400, posting its highest at 1.3470.

On the technical side, and by looking at the chart, we find the simple moving averages that support a bullish curve for prices, and the 50-day average meets around 1.3370 and adds more strength to it. Therefore, the bullish bias is likely today, targeting 1.3500 and then 1.3530 respectively, noting that the recent breakout confirms the strength of the bullish bias to be 1.3590 the next leg.

A reminder that the activation of the suggested scenario depends on the price remaining above 1.3370, most importantly 1.3350, and breaking the latter renews the chances of the bearish tendency controlling the pair to target 1.3300 / 1.3290.

Note: The level of risk is high

S1: 1.3335	R1: 1.3530
S2: 1.3210	R2: 1.3590
S3: 1.3145	R3: 1.3715