Bears dominated the GBP/USD exchange rate yesterday. After testing the monthly PP, disappointing data on the British Manufacturing Production pushed the Sterling 55 pips lower down to the 200-hour SMA and the bottom boundary of a three-week channel near 1.3360. The pair subsequently tried to regain some positions, but nevertheless failed to gain strength and fell below this support.
It is likely that the pair continues to edge lower in this session, as well. The nearest support is the weekly S1 at 1.3313, while no other support is located until the weekly S2 at 1.3215.
Meanwhile, the Pound is currently testing the 55– and 100-period (4H) SMAs. In case this support holds strong, it should target the aforementioned monthly PP and move even higher up to 1.3460.
