Due to existence of a strong selling pressure in the area between 1.3440 and 1.3450 marks, the cable could not climb higher and was forced to make a rebound.
However, as this turnaround matched with news coming from Brussels, the Pound lost more than 100-pips against the Dollar and ended the week at the psychological 1.3300 support level.
Today the pair is expected to resume the upward movement, even though it is unlikely to exceed the 1.3380 mark, as this area is reliably secured by the weekly and monthly PP as well as the slipping 55-, 100- and 200-hour SMA.
In other words, without another fundamental impulse the pair will be forced to retreat once again. In larger perspective it looks like the Friday’s plunge led to transformation of a medium descending channel into the falling wedge formation.
