The Pound has been confined in a channel up against the New Zealand Dollar since mid-July. However, the pair failed to reach its upper boundary during the last wave up, as the rate reversed near the 1.9540 mark. The Pound has subsequently formed a minor descending channel the bottom boundary of which was tested on Thursday. Meanwhile, the given currency breached a short-term up-trend early in this session, thus pointing to a possible increase in price within this session. In case of a strong upside momentum, a possible upside target could be the 1.97 area, as the weekly and monthly R1s are located nearby. Subsequently, the pair could resume its current momentum south towards the lower boundary of the senior channel in the 1.91/92 area.
