Strong upside risks prevailed on Tuesday, thus sending the Sterling 96 pips higher against the US Dollar. A notable hourly boost of 0.39% was provided by solid British Services PMI released early in the session. The pair subsequently found resistance at the 55-hour SMA and resumed its movement upwards, thus being located at the weekly R1 early today.
As apparent on the 4H chart, the Pound has surpassed the 100-period SMA which might provide additional support to the rate. Technical indicators show that some upside potential should be realised within the following trading hours, setting the weekly R2 at 1.3465 as a probable northern target.
The overall market sentiment for today remains bearish, with the Sterling approaching the 200-hour SMA and the weekly PP circa 1.3320.
