As was anticipated, the Sterling done its best to erase most of Tuesday’s losses yesterday, but was still unable to fully reclaim the 1.27 level, which resulted in a close 30 pips lower. The Cable is now expected to maintain trade between the monthly S2 and the monthly S1, with the exchange rate mostly gravitating towards the 1.2750 area. Consequently, another bullish development today would confirm this scenario, even though some technical indicators suggest otherwise. Furthermore, the GBP/USD currency pair has been sliding down for five weeks in a row now, which only adds fuel to the already bearish ‘fire’. A possible trend-line at 1.2730 could also limit today’s gains should they occur. In case bears manage to prevail, the pair is unlikely to drop far below the monthly S2 or the 1.26 major level.
