Downside risks prevailed during the first half of Tuesday. However, the 55-hour SMA proved to be an unbrekable resistance that pressured the rate back north. Similarly to EUR/USD, the Pound was stranded between the weekly R1 and the 55-hour SMA at 1.3823 and 1.3781, respectively. Meanwhile, the pair breaching a short-term ascending channel suggests that bears might eventually take the upper hand in the market. This scenario, however, depends on the rate’s ability to breach the aforementioned moving average. A subsequent fall should not exceed the 100-hour SMA located near the 1.37 mark. Even though an upward breakout should not be discarded, more weight is put on the bearish scenario, especially if the northern side is likewise reinforced by the monthly R3.
