In line with expectations, traders used the 55-hour SMA as a benchmark to push the rate in the southern direction. The main role in the yesterday’s downfall played a release of better than expected US employment data as well as Govern Powell’s and the BOE MPC Members’ McCafferty and Haldane speeches. Because of a quite sharp depreciation of the Pound against the Dollar, the pair not only fell from a descending channel, but also crossed the 38.2% retracement level at 1.3145. The fact that the average market sentiment remains 59% bullish and the fact that 55% of traders are willing to purchase the Sterling suggests that the pair is likely to make a rebound either from the weekly S3 at 1.3078 or from an area near the psychological 1.30 level.
