The stronger US Dollar weighted negatively on the GBP/USD exchange rate yesterday morning, as it was pushed even lower down to the weekly S1 at 1.2960—its lowest position since September 2017.
It seems that this week’s weakness is caused by fundamental developments from both sides, especially uncertainty around Brexit. This has stopped any attempts to push the Sterling higher even despite trader sentiment being strongly bullish for the past few days.
Two scenarios are possible today. If the 55-hour SMA at 1.30 is breached, the Sterling should aim for the breached channel and the 100-hour SMA at 1.3150.
Conversely, the next southern target is the 61.80% Fibo at 1.29. However, it is not expected that a strong bearish move is apparent today.
