As previously expected, the Pound continues moving closer to a downward-sloping trend-line located near the 1.3910 mark for the third consecutive session. A 20-pip surge mid-Monday added some ground to the bullish sentiment, thus pushing the rate up to the 1.39 mark.
The Asian session began with a slight decline for the Sterling that is likely to continue until the British Annual Budget Report and the US CPI published at 1130GMT and 1230GMT, respectively, introduce changes to the overall market sentiment.
In general, it is likely that fundamentals, especially the second event, dominate the market during the second part of the day. A possible trading range is the 55– and 100-hour SMAs and the weekly PP at 1.3850 from below and the weekly R1 and the monthly PP at 1.3935 from above.
