In first half of the previous trading session the currency pair struggled to bypass a combination of the weekly and monthly PP as well as the 55-, 100- and 200-hour SMAs, as expected.
Nevertheless, the overall depreciation of the Dollar allowed the cable to surge to the 1.3420 mark and only then make a rebound. As the above yesterday’s resistance has turned to support, the rate most probably will resume the surge, trying to properly reach an alleged upper trend-line of a senior falling wedge formation.
However, the upcoming vote on tax reform is likely to alter this scenario and push the Dollar back to 1.3340. In support of this assumption, a majority of pending orders in 100-pip range are set to sell.
