The Pound Breaks Through The Resistance

Mixed trading tended to the upside that dominated the pound’s movements against the US dollar after the Bank of England’s decisions, reaching its highest level at 1.3750.

From a technical point of view, we find the pair could stabilize intraday above the previously breached resistance level, which is now turned into a support level at 1.3670, accompanied by the support of the 50-day moving average returned to hold the price from below.

Therefore, there is a possibility to continue rising to target 1.3775, a first target, knowing that the latter’s breach is a catalyst capable of extending the pair’s gains to visit 1.3830/1.3820.

The return of stability below 1.3770, and most importantly 1.3750, will immediately stop the attempts to rise and lead the pair to the official descending path, with an initial target starting at 1.3640 and 1.3600, respectively.

S1: 1.3640	R1: 1.3775
S2: 1.3555	R2: 1.3830
S3: 1.3500	R3: 1.3915