On Monday, the expected upside potential up to the 1.2770 mark was halted by the monthly S1 at 1.2758 which intersected with the upper channel line. Subsequently, the price dropped down to the weekly PP at 1.2708 in response to fundamentals, but managed to recover some losses, thus returning above the 200-hour SMA. In this trading session, the Pound crossed the 55-hour SMA from below and continued a minor surge up to 1.2740. Technical indicators remain bullish, thus a continuous surge is likely to occur in the upcoming hours, setting either the aforementioned S1 or the 38.2% Fibo at 1.2770 as possible upside targets. In general, the pair is not expected to fall below the 200-hour SMA. Today, the economic calendar is full of important fundamental events, thus the rate should respond accordingly.
