Due to release of satisfying data on the UK CPI, the Pound got an upside momentum that helped it to cross the monthly R1 at 1.3208 and then continue the surge. In the early Wednesday morning the pair even managed to reach the weekly R1. Most probably, until a release of information on the UK Average Hourly Earnings the pair will continue to fluctuate around the 1.3310 level. Usually, the market reaction on this event amounts to 30-40 basis points. This means that if the released data will justify experts’ forecasts, the Sterling might finally reach the upper trend-line of a dominant ascending channel and then make a rebound. In the opposite scenario, the pair is likely to slip back to the 55-hour SMA and then continue the downfall.
