The Sterling was fluctuating in a narrow range between the monthly PP and the 38.20% Fibo retracement on Tuesday morning. It then made two notable leaps in both directions, but nevertheless returned within the aforementioned trading range.
As apparent from the pair’s movement yesterday, the Pound tried to breach the 1.40 area for several hours; however, the combined resistance of the monthly PP, a two-week trend-line and the weekly S1 limited any movement above this psychological level. Thus, it is likely that this sessions does not bring any significant changes to the overall price level.
In case the 1.40 mark is breached, the 1.41 area should be the ultimate high for today, while the weekly S2 could limit losses below the 1.3829.