Following an unsuccessful attempt to breach the 200-hour SMA and the weekly PP at 1.41 early on Thursday, the bearish sentiment started to guide the Sterling lower. As a result, it finally breached the four-day narrow trading range and fell down to a support cluster formed by a short-term trend-line and the monthly PP near 1.40.
The pair’s inability to push below this level and reach the senior channel at 1.3950 does show that it might provide an unbreakable psychological barrier. Technical indicators are likewise neutral, suggesting that a significant fall should not occur today. On the contrary, it is more likely that the Pound reverses to the upside and targets the 55– and 100-hour SMAs located at 1.4050.
This session includes several noteworthy fundamentals that should introduce volatility.
