Despite flashing bullish signals early on Wednesday, the narrow range between the 55-hour SMA and a historic resistance/support level at 1.3232 was breached to the downside. This move extended the Pound’s losses against the US Dollar to the third consecutive session.
The pair is trading near the bottom boundary of a six-week descending channel at 1.3125. Thus, it is likely that bears still manage to push the rate lower to 1.31 today. However, bulls are expected to lead the pair for the following 24 hours and even longer.
This is supported by converging technical indicators and the current sideways movement which shows that the strong bearish sentiment has eased considerably. Upside potential is apparent until the 55-hour SMA at 1.3232.
