The first part of Friday’s trading session was spent with no massive changes to the Pound’s positioning against the US Dollar, as the pair remained fluctuating slightly above the monthly PP at 1.40.
High volatility was introduced mid-session when the US released sluggish employment data. As a result, the Sterling surged 85 pips against its American counterpart within a few hours and breached the 55–, 100– and 200-hour SMAs along the way. This massive bullish momentum was followed by a narrow movement sideways during the Asian session which occurred near the upper boundary of a breached short-term channel up.
It is expected that the pair is tended south in this session just to ease the aforementioned up-move. This fall, however, is likely to be limited by the SMAs and the weekly PP at 1.4050.
