The Sterling has been unable to pick up momentum against the US Dollar, thus in total losing 2.75% since the beginning of August.
On Thursday, GBP/USD was stable during the first part of the day limited by the weekly S2 at 1.2854. This was followed by a change in sentiment mid-session when the rate breached the senior channel and fell down to the psychological 1.28 mark—the pair’s lowest position since August 2017.
The rate is clearly oversold which should in turn increase upside risks in the nearest time. If the 1.28 level does not hold the rate, it is likely that the current decline ends only near the monthly S2 and the weekly S3 at 1.2735. From the upside, the Sterling remains restricted by the 55– and 100-hour SMAs near 1.29.
