Bears have dominated GBP/USD for the second consecutive session. The slight recovery apparent on Monday morning was stopped by the 55-, 100– and 200-hour SMAs and the bottom boundary of a seven-week ascending channel circa 1.4150. As a result of this strong momentum south, the Sterling breached the monthly PP and was halted solely by the 38.20% Fibo near the 1.3950 mark.
Technical indicators are converging and are located in the strongly bearish territory, thus bulls might try to use this opportunity to push the rate higher. A possible upside target for today could be near 1.4150 where all the three moving averages are located.
In case bulls fail to move the rate above 1.40, a subsequent fall down to 1.3850 is likely.
