The Sterling has strengthened against the US Dollar during the past two trading sessions. The broadly-based weakness of the latter has allowed the Pound to push above the 1.3440 mark early on Thursday. Thus, the rate was testing the upper boundary of a four-week descending channel. Apart from the given line, the nearest resistance is provided by the distant 50.0% Fibo located at 1.3485. It is, however, unlikely that the rate pushes this high in this session. Technical indicators suggest that the strong upward movement should allay, but the Sterling could nevertheless remain relatively stable against its American counterpart. The most likely downside target for today is the combined support of the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs circa 1.3370.
