Pound Retesting Support

After several consecutive sessions of the rise of the pound sterling against the US dollar, after it succeeded in confirming the breach of 1.3710, to hit a strong resistance around 13860, which we indicated during the previous report as a prerequisite for resuming the bullish trend.

On the technical side, today we find that the pair failed to breach the aforementioned resistance level, and the current moves are witnessing stability below the 1.3800 barriers.

Looking at the 60-minute chart, we find the RSI indicator started to gain bearish momentum, this comes in conjunction with the negative pressure coming from the 50-day moving average, which meets around 1.3830 resistance and adds more strength to it.

Therefore, we may witness a bearish tendency during the coming hours, aiming at re-testing the pivotal support 1.3765, a first target, and breaking it would put the price under strong negative pressure, targeting directly a re-test of 1.3710.

From the top, crossing to the upside and rising again above 1.3830 will postpone the chances of a reversal, and we may witness a slight bullish slope targeting 1.3865 initially.

S1: 1.3765	R1: 1.3840
S2: 1.3740	R2: 1.3890
S3: 1.3690	R3: 1.3920