The Sterling was unable to overcome the psychological 1.32 mark, thus being driven by bears during the whole session on Thursday. The rate breached the short-term ascending channel and the 55—, 100– and 200-hour SMAs, thus losing almost 100 pips along the way.
This breakout should point to further decline today. There is no level limiting the pair until the distant monthly S1 at 1.3020. This means that if bears do take over the market, the Pound might be sent for a freefall down to this mark.
In terms of upside potential, the rate will need strong bullish momentum to overcome the many resistance levels apparent on both the 1H and 4H time-frames. Thus, even if the aforementioned plunge does not occur, gains should likewise be limited.
