The Sterling showed significant volatility against the US Dollar on Thursday which was seemingly caused by mounting tensions around Brexit.
This weakened the British currency by 0.6% against its American counterpart, thus sending the pair as low as the 100-hour and 100-period (4H) SMAs near 1.3390. At the same time, the pair also reached a new two-week high of 1.3465 prior to this fall. The remainder of the day was very calm, as volatility eased due to the monthly PP and the 55-hour SMA being located nearby.
Technical indicators flash bearish signals for this session. In case this 55-hour moving average is breached and the pair does go lower, the it faces two strong support levels at 1.3375 and 1.3340. In terms of resistance, the 200-period (4H) SMA and the 61.80% Fibo are located at 1.3550.
