Pound Struggling With Selling Pressure

The pound failed to achieve long-term stability above 1.3000 against the US dollar, retreating significantly. Note that we mentioned in previous analysis that stability of trading below 1.3000 is an important and essential condition to activate the suggested scenario and trading below it negate the bullish attempts and we may witness a downtrend targeting 1.2965 and extending later towards 1.2930 to post low of 1.3911.

On the technical side, today, there is a negative pressure on the simple moving averages, which coincides with the emergence of signs indicating that the pair has gained bearish momentum. Therefore, we will maintain our negative outlook, provided we witness a clear breach of 1.2900, in order to facilitate the mission required to visit 1.2860, and then 1.2810 initial stops.

From the top, surpassing the previous broken support-into-resistance 1.3000, will stop the retreat attempts and lead the pair to an upside path targeting 1.3120. Warning: Stochastic attempts to provide positive signals on short intervals.

S1: 1.2860	R1: 1.3020
S2: 1.2810	R2: 1.3120
S3: 1.2700	R3: 1.3180