The British Pound continued to outperform the US Dollar on Wednesday, but with gains limited by the newly-formed ascending channel’s resistance line. The channel supports the possibility of the Cable edging lower today, with both trend-lines near 1.29 likely to be retested. The bearish development was long expected, but technical indicators began showing rather strong bullish signals recently, suggesting the channel could be broken to the upside. A continued recovery could suggest the pair is on the path to the larger scale pattern’s resistance line just under the 1.35 mark. However, the Sterling is first required to stabilise above 1.30, as supply around this area kept it away from posting more gains since October 2016.
