Despite flashing bullish signals on Monday morning, the Sterling managed to maintain its downward-sloping movement throughout the day. As a result, it breached the senior channel, the monthly PP and the 38.20% Fibonacci retracement along the way. The pair had remained near the latter by the time of this analysis.
It is expected that the 1.39 mark is not surpassed today, as bulls might want to re-gain some of their lost positions after the massive 3.19% plunge that started last Tuesday. In addition, technical indicators are likewise starting to converge.
The Sterling could find strong resistance at 1.4050 where the 55-hour SMA and the senior channel are located. This level should eventually be breached just to push the pair towards the 100-hour SMA and the weekly PP at 1.4150.
