The Pound Faces a Re-test Scenario

Positive trading dominated the pound’s movements against the US dollar within the positive outlook, as we expected, touching our first awaited target located at 1.3970, recording a high of 1.3976.

Technically, and with a closer look at the interval chart, we find that the Pound found a strong resistance level around 1.3970, and the stochastic oscillator started trading negatively.

Therefore, we may witness a slight bearish bias during the coming hours, aiming to re-test the support level of 1.3900, and then 1.3875.

Note: the aforementioned bearish corrective bias does not contradict the bullish trend, whose targets are around 1.4000 and 1.4040, once the breach of 1.3970 is confirmed.

S1: 1.3875	R1: 1.4000
S2: 1.3810	R2: 1.4040
S3: 1.3760	R3: 1.4105