Despite the massive plunge on Thursday, the Sterling failed to accelerate against the US Dollar during the following day. As a result, the pair lost 87 pips and reached the combined support of the senior channel, the weekly S1 and the monthly PP.
The rate lingered near the channel line on Monday morning, thus showing that bulls have managed to regain enough strength to resist a further fall. Technical indicators are slowly recovering from their lows which likewise adds some ground to a possible upward momentum today. No resistance are limiting the pair until the psychological 1.41 mark where the 55-hour SMA is located.
In case of a strong up-move, the Pound could hinder near this moving average for a brief period of time prior to taking on the course towards the 100– and 200-hour SMA circa 1.42.
