GBP/USD continues to trade sideways for the second consecutive session. The pair even diminished its trading range on Monday, as it was restricted by the seven-month low of 1.3230 and the 55-hour SMA.
It is expected that volatility increases today due to several fundamental releases; thus, one of these two barriers will be breached. Given that technical indicators are located in the oversold territory and that the rate has failed to breach this many-month low for two days, this move is more likely to occur to the upside.
This would allow the Sterling to approach the 1.3350 level which is strengthened by the 55– and 100-period (4H) and 200-hour SMAs. In case bears prevail, the Pound should not fall below the channel line at 1.3150.
