The British Sterling was bounded by moving averages during the first part of Monday, thus trading in line with a short-term channel down.
This lack of momentum changed significantly mid-session when a successful Brexit deal between the EU ad the UK shot up the rate by 1.03% within a couple of hours. As a result, the pair breached the prevailing senior channel and pushed as high as the weekly R2 at 1.4083.
Technical indicators still flash strongly bullish signals; however, their direction does show a tendency southwards. Thus, traders should see a bearish correction to the 1.40 area where the 55– and 100-hour SMAs are located.
In case no fundamentals shake the market today, it is unlikely that the 1.4080 is breached, thus paving the way for a slide south.
