Some bullish momentum was apparent in the market on Tuesday morning. This appreciation failed to exceed 1.3160, as the combined resistance of the 100– and 200-period (4H) SMAs weakened the strength of bulls. As a result, the Pound provided the third confirmation of a short-term trend-line near 1.3160. The rate was pushed lower past the 55-, 100– and 200-hour SMAs later in the day.
Technical signals are mixed today. However, the rate moving below this strong support cluster does suggest further decline in this session. A possible downside target is the weekly S1 at 1.3040.
In terms of resistance, it is unlikely that the weekly R1, the 50.00% Fibo and the 200-period SMAs near 1.32 are breached. The FOMC rate statement might introduce high volatility in the evening.
