Following a massive leap upwards on Thursday morning, GBP/USD returned to test the weekly PP at 1.2926. Despite various attempts, the Sterling failed to overcome this level and edge lower. The nearest resistance is formed by the weekly R1 at 1.2986. This level may be tested today, given the continuous support from the 20-hour SMA. The market in the morning session demonstrates lack of volatility. Thus, traders may be cautious prior to fundamentals from the US at 1230GMT. In case these data do not shake the market tremendously, it is likely that the pair remains between the weekly PP and R1 in the 1.2910/1.3000 range. Solid downside risks could likewise push the rate to a support cluster formed by the 55-, 100– and 200-hour SMAs circa 1.2900.
