Until release of data on the American PPI, the cable was moving below the monthly PP, as expected. But then publication of better than anticipated result led to active appreciation of the buck, which pushed the rate through support zone located between the 1.3338 and 1.3331 marks.
Accordingly, yesterday’s trading session the pair ended near the 1.3300 psychological level. As this support line crosses the bottom boundary of a senior descending channel, the Pound should try to restore some value today.
However, the fact that it is simultaneously moving in other two descending channels makes such scenario unlikely. Moreover, the pair constantly experiences pressure from the slipping 55- and 100-hour SMAs. But most importantly is that expectations of the upcoming interest rate hike increases bearish sentiment that might result in a deep plunge to the 1.3230 mark.
