The first part of Wednesday’s trading session for GBP/USD was spent under the bearish pressure. Additional downside momentum was provided by a sluggish UK CPI data release at early in the session.
As a result, the Sterling dashed through its previous 2018 low, the prevailing three-week channel and the monthly S1 prior to reversing back to the upside near 1.33. The rate recovered during the second part of the day, thus being located at the breached channel early on Thursday.
Following such a strong daily fall, the Sterling should try appreciating today; however, it is likely to find strong resistance in the 1.3400/20 area. In case this level is surpassed, the next target is 1.3460.
Meanwhile, downside potential is apparent until the weekly S3 at 1.3250.
