The British Sterling was confined by the 55– and 200-hour SMAs on Monday. It did, however, breach a notable support cluster set by the 100-hour SMA and the weekly and monthly PPs circa 1.40 along the way.
As apparent on the chart, the pair is bounded by two significant barriers on each side; thus, a breakout is likely to determine its subsequent direction during the day. In terms of technicals, the rate is flashing strong oversold signals that could be an early indication of a soon period of appreciation. This scenario is supported by the fact that the lower boundary of a two-week ascending channel that could put upward pressure on the pair is likewise located nearby.
In case no events shake the market, the pair could maintain its trading range between the 55– and 200-hour SMAs in this session.
