The Sterling was driven by downside potential during the first part of Wednesday. The rate stabilised mid-session and was subsequently trading in a narrow 1.3928/57 range.
It is expected that the pair increases its volatility soon and ends this slight movement sideways. Bulls might fail to break out northwards, as the 1.3960 level is reinforced by the 38.20% Fibonacci retracement and the 55– and 100-hour SMAs. This cluster could force the Pound lower towards the 1.39 mark, as likewise signalled by bearish technical indicators.
The nearest support is set by the distant weekly S1 at 1.3880 which might not actually be reached today if the US Core Durable Goods Orders do not provide any negative surprises. Meanwhile, the ultimate high for today should be 1.40.
