The Pound has broken the resistance of a medium term descending pattern against the US Dollar. However, the resulting surge was stopped by a dominant descending pattern’s resistance line together with the 61.80% Fibonacci retracement level at the 1.29 mark.
On Tuesday morning the rate had bounced off the resistance line and retreated already down to the first support level that paused its decline. Namely, the 100-hour simple moving average stopped the decline.
In regards to the future, watch the SMAs for guidance. If they get passed, the weekly PP will be aimed at. On the other hand SMAs might push the rate higher.
