Despite hindering the pair for several hours, the weekly S1 was eventually breached at 1.3106 early on Wednesday. Bearish momentum was strengthened by rather sluggish UK CPI data which sent the Pound for a 44-pip hourly plunge. This paved the way for a fall down to the eight-month low and the monthly S1 at 1.3020, thus resulting in a southern breakout of a two-week channel down.
The rate has since recovered and been moving towards the 55-hour SMA at 1.3130. The 100– and 200-hour SMAs are likewise located nearby—resistance which is likely to limit gains today. Upside potential is apparent until 1.32 although the pair might not reach as high.
In case of some bearish movement, the aforementioned 2018 low should work as an unbreakable support.
