GBP/USD was moving in line with the short-term falling wedge on Wednesday. After ranging slightly below the weekly S1, the Pound picked up momentum and reached the 55-hour SMA at 1.32. This line, however, proved to be strong resistance which sent the pair back down to the 1.3150 level this morning.
The Sterling still lacks some pips to reach the bottom boundary of a channel down at 1.31. The give currency is likely to approach this boundary, being strengthened by the current bearish momentum.
However, the market sentiment should change to bullish later in the day, thus allowing the rate to test either the weekly S1 and the 55-hour SMA or the 100-hour moving average at 1.3185 and 1.3232, respectively. Important data releases from the UK are scheduled for today.
