“This [the overnight high] coupled with the strong daily closing suggest further upwards pressure and a daily closing above 1.2370 would indicate that GBP has moved into a bullish phase (with an immediate target of 1.2500).”
– UOB Group (based on PoundSterlingLive)
The Cable managed to unexpectedly recover from its intraday low on Friday, ultimately ending trade in the green zone. Moreover, the British Pound was able to breach the immediate resistance, but with gains unable to climb over the 1.24 major level, where psychological resistance was strong. Friday’s rally only confirmed the overall outlook, with the GBP/USD pair now being one step closer to reaching its main goal, namely the nine-month down-trend. The final obstacle ahead of this target is the 100-day SMA, which provides resistance circa 1.2415, but technical studies are unable to confirm the possibility of another positive outcome.
There are still 68% of traders being long the Sterling today, while all pending orders are now equally divided between buy and sell ones.
Interested in GBPUSD technicals? Check out the key levels
- R3 1.2407
- R2 1.2401
- R1 1.2393
- PP 1.2387
- S1 1.2378
- S2 1.2373
- S3 1.2364
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.