The resistance cluster which limited a move above the 1.40 mark provided a strong barrier for the Pound on Wednesday. Thus, bears took over the market. As already expected, the pair breached the two-week channel down circa 1.3825 later in the evening and has since been moving lower in line with the junior pattern.
Daily technical indicators favour a continuous fall within the following trading sessions; thus, it is likely that the Sterling targets the bottom boundary of the senior channel near 1.3750.
In terms of today, the pair is expected to remain between the weekly S1 and the combined resistance of the 55– and 200-hour SMAs and the 38.20% Fibo retracement in the 1.3840/1.3960 area. A retracement from the breached channel is the most likely scenario.
