Following no changes to its price level on Wednesday, the Pound began weakening slightly against its American counterpart during the following day. It fell below the 55– and 100-hour SMAs and stopped solely at the 1.28 level early this morning.
This has left the rate between the 100– and 200-hour SMAs in a narrow 1.2785/1.2850 range. The Sterling should fluctuate in between those lines during the first part of the day. Even if a breakout occurs to the upside, it is not expected that large gains are apparent today due to the 55-hour SMA being nearby at 1.2872.
Meanwhile, there is slightly greater downside potential, with the next support level being the monthly S2 and the weekly PP at 1.2750. Technical indicators flash bearish signals in this session.
