GBP/USD was trading between the 200-hour SMA and the weekly S1 on Wednesday. Bulls gained the dominant hand during the second half of the session; however, gains were limited by the strong resistance of the 55-period (4H), 100– and 200-hour SMAs.
This barrier was breached early today, thus pointing to a soon breakout of the five-day descending channel and a continuous surge. The positioning of technical indicators demonstrate that there is still some upside potential that could be realised today. The nearest level of resistance is the monthly PP at 1.3427, while the Sterling might likewise target the breached channel line at 1.3475.
In case this was a false breakout, the rate is likely to fall back down to the weekly S1.
