Thursday’s trading session was very calm for the GBP/USD exchange rate. It was previously expected that a breakout from the 55-hour SMA would be followed by a surge, as this line has been a strong resistance level for three weeks now. This did not happen, as bulls were unable to surpass the monthly S2 and the 100-hour SMA at 1.2750.
Some upside potential is still apparent in the market with the daily high likely to be located near the senior channel, the 200-hour SMA and the weekly PP at 1.2840. This trading session might likewise be with low volatility due to lack of fundamental affecting the rate.
In general, the current appreciation is expected to continue next week as well, especially if taking into account that the Pound reached a one-year low against the Greenback on Wednesday.
