The Sterling continued to strengthen against the US Dollar on Tuesday, thus ending the day with an 81-pip gain. This session, however, mark some changes to this bullish sentiment, as the pair has been trading sideways in a narrow range below the monthly R1. It seems that this minor period of consolidation could be an early indication to a possile change in the market sentiment, at least for today. In addition, technical indicators are gradually retracing from their high positions. In general, this session might mark high volatility due to various fundamentals to be released today. A strong support area is located circa 1.3530, while a breakout of the monthly R1 would send the pair for a test of the weekly R2 at 1.3667.
