Following two sessions of decline, the bearish sentiment of the GBP/USD exchange rate allayed considerably on Friday. The pair halted slightly above the psychological 1.40 mark and remained fluctuating in the 1.4020/60 range for the whole session.
By Monday morning, the Sterling had reached the 55-hour SMA, thus providing additional pressure from above. The slight tendency upwards apparent on Friday does suggest that this moving average could be breached, thus pushing the rate towards a more significant resistance formed by the 100– and 200-hour SMAs and the weekly PP near 1.41. This level which roughly coincides with a breached channel is likely to be today’s high.
Meanwhile, a fall below 1.40 should not occur in this session, as this mark is supported by the monthly PP.
