GBP consolidates its gains 27/5/2022

Bullish movements dominate the trading of the pound sterling against the US dollar, building on a strong demand area at 1.2500, heading towards touching the first target at 1.2635, recording its highest level during the morning trading of the current session at1.2667.

Technically, we tend to the positivity, relying on the intraday breach of the 1.2630 resistance level and the price stability above the 50-day simple moving average, which continues to hold the price from below and the clear positive signs on the 14-day momentum indicator.

The bullish scenario remains the most likely, heading to visit the second target published yesterday around 1.2700/1.2695, and then 1.2730 next station as long as the price is stable above 1.2585.

The return of trading stability 1.2585 puts the price under negative pressure to retest 1.2500 before determining the price destination again.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.2585	R1: 1.2700
S2: 1.2510	R2: 1.2740
S3: 1.2465	R3: 1.2810