Pound Looking For Direction

Positive trading returned to dominate the sterling’s moves against the US dollar, negating the negative outlook, as we expected yesterday, and touching the stop loss order mentioned in the previous analysis at 1.3000, posting high at 1.3065.

Technically, the 50-day moving average returned to hold the price in addition to the intraday stability above 1.3000.

Despite that, we tend to be negative, but we prefer to wait until the trend becomes clearer, to face one of the following scenarios:

For the downside, we need stability below 1.3000, and from here we may witness a bearish slope targeting 1.2950, ​​and price behavior should be monitored around the aforementioned level because breaking it puts the price under negative pressure towards a second target of 1.2900.

Activating long positions requires a clear breakout of the 1.3050 resistance level. From here, the pair regains the bullish path with an initial target of 1.3100, and extends to 1.3170.

Caution: careful consideration is required amid the high level of risk

S1: 1.2895	R1: 1.3100
S2: 1.2775	R2: 1.3180
S3: 1.2690	R3: 1.3300