GBP/USD was trading in a calm manner slightly below the monthly PP and the weekly S1 on Wednesday morning. However, the bearish pressure from the 55-hours SMA resulted in a brief southward movement down to the 1.3850 mark. It is likely that this moving average continues to guide the Sterling within the following trading hours until fundamentals from the Bank of England scheduled for 1200GMT introduce volatility in the market. The daily high should be the 1.4050 area, while other resistance levels along the way are also expected to hinder strong hourly surges. From the downside, the pair is supported by the weekly S2 at 1.3829. In case of strong downside risks, the Pound could try to test the 1.37 level, reinforced by the weekly S2 and the monthly S1.
