Following a test of 1.4150 on Friday morning, downside risks took over the market and pushed the rate 0.92% lower during the following hours. As a result, the pair was testing the weekly PP and the 100-hour SMA circa 1.40 early today.
It is likely that this psychological level provides an unbreakable support, thus allowing for further gains in this session. The rate could demonstrate low volatility, especially if no fundamentals are scheduled until the evening. Thus, the Pound could fluctuate between the 55– and 100-hour moving averages for a brief period of time before breaching the former and approaching the weekly R1 at 1.4204.
Meanwhile, the lowest point today should be the 200-hour SMA and the 38.20% Fibo retracement at 1.3950.
