The Sterling has strengthened significantly against the US Dollar since mid-Friday. This marks a 175-pip surge, with 107 pips being added on Tuesday. By this morning, the pair had managed to reach the weekly R2 at 1.2915. The monthly S1 is also located nearby.
The Sterling has remained near this resistance cluster for some time now. It could point to a possible change in sentiment, thus resulting in a decline today.
The nearest support of importance is the weekly R1 and the 55-hour SMA near 1.2830; however, the trading range could be even wider in the wake of fundamental events later in the day. The pair is unlikely to fall below the 200-hour SMA, the monthly S2 and the weekly PP at 1.2750.
