Following a rather quite morning on Tuesday, the Sterling took advantage of the weaker US Dollar later in the day and eventually dashed through the strong resistance of the monthly and weekly PPs and the 200-hour SMA circa 1.3870. Further advance did not follow, as the pair entered a minor period of consolidation.
Despite technical indicators flashing bearish signals, it is likely that the breached resistance succeeds at supporting the rate near 1.3860. This level also coincides with the 55-hour SMA and the prevailing one-week tend-line.
By and large, it is expected that the Sterling pushes higher within the following trading sessions until a downward-sloping trend-line and the 38.20% Fibo retracement is reached near 1.3950.
