The Pound was relatively steady against the US Dollar early on Monday. This lack of direction changed mid-session when the pair fell 73 pips and consequently breached the 55– and 200-hour SMAs.
Further decline was stopped by the 100-hour moving average and the weekly PP at 1.3305. This level was surrendered early today, thus pointing to continuous bearish potential. Technical indicators support this scenario.
The nearest support is set by the bottom boundary of a one-week channel at 1.3280. This mark might not hold strong which should then result in a test of the weekly S1 at 1.3250.
In case the three SMAs are breached to the upside, gains are likely to be capped at 1.34 where strong resistance is apparent on both the 1H and 4H time-frames.
