Despite release of worse than expected Services PMI data, the cable could not pass below the monthly PP located at 1.3372 and was forced to halt the fall. At the moment, it is moving horizontally, being squeezed between the 55- and 100-hour SMAs from the top and the weekly PP with the 200-hour SMA from the bottom. Even though support barriers look stronger, generally, the rate is expected to continue moving downwards.
However, there is a need to take into account that this pair is highly affected by political news coming from both sides of Atlantic that lead to impulse spikes, which can not only break minor patterns but even alter the forming downtrend.
