The Pound surpassing the 55-, 100– and 200-hour SMAs on Thursday morning signaled to a possible surge during the given session. This assumption, however, was abandoned when the rate reached the 200-period (4H) SMA at he 1.2450. This was followed by a massive 1.60% plunge down to the weekly S2 at 1.3215 at the time of this analysis.
It is likely that bears still push the Sterling lower within the following hours until the psychological 1.32 level is reached. Technical indicators are located at historic lows; therefore, some upside potential is apparent today.
The most probable daily high should be all the three SMAs and the weekly PP circa 1.3360. The 55– and 100-period moving averages are likewise located in this territory.
