Sterling against the US dollar is on the edge of the abyss

Sterling pound's fate hangs on 1.2150 level

By Raed Alkhedr | @raedalkhedr | 15 March 2023

Sterling Correction
Sterling correction
  • The Sterling pound managed to maintain key support at 1.1800

  • Powell's statements led the sharp decline of the pair

  • The pound is trading below the resistance area of 1.2150

After the sterling fell to test the support level at $1.1800, coinciding with Powell's hawkish statements regarding maintaining the aggressive tightening monetary policy., The pound $1.18 key strong support held the currency from falling below this level.

The cable was able to rebound from this key support to near $1.2150. but is still moving within the range of a descending channel.

Chart Daily

The pair failed to surpass the 1.2150 level. Unable to break above this key area of cross resistance.

On the downside, the pair is likely to decline from the current levels to test the support 1.1800, which if broken, may extend the drop to test 1.1350.

However, if the pair succeeds in surpassing the resistance level at 1.2150, this may lead the currency upwards extending the rise to the level of 1.2450.