Bulls prevailed on Friday, thus pushing the GBP/USD exchange rate past the 55-, 100– and 200-hour SMAs and the prevailing five-week channel down. The pair reversing from the 1.3260 level early on Friday allowed to draw a new short-term ascending channel whose upper boundary was tested early today.
Some slight upside potential is still apparent in the market. Thus, it is expected that the pair tests the combined resistance of the weekly R1, the monthly PP and the 100-period (4H) SMA near 1.3420. Bullish gains should not exceed the 1.3450 level. Conversely, the strong support cluster formed by the breached hourly SMAs and the channel near 1.3310 is likely to remain intact.
In general, the following days should still show some appreciation that could change to the opposite direction mid-week.
