The minor period of consolidation which started on Thursday was not followed by a breakout of the 55-hour SMA near 1.41. Instead, the Pound gained upside momentum mid-Friday and pushed the rate above the 1.4150 mark.
It is likely that the same scenario occurs today. No significant fundamentals that could add some bearish pressure are scheduled for today. Thus, the Sterling should continue trading along the 55-hour moving average. The nearest resistance is set by a channel line or the monthly R2 near 1.4225 and 1.4300, respectively.
In case the 55-hour SMA is breached, losses should not exceed the 1.41 area where the 100-hour moving average is located.
