Thursday’s trading session was characterized by strong upside momentum that was stopped by the monthly R1 near the 1.3036 mark. The given direction reveals the formation of a minor ascending channel that would suggest a fall down to the 55- hour SMA or the monthly PP at 1.2938 and 1.2903, accordingly. Even though technical indicators remain bullish, trend indicators demonstrate that the given uptrend is decreasing in strength, thus confirming a possible move south in this session. On Monday morning, however, the rate may return near the 1.3000 if the channel-up boundaries are respected. By and large, the rate is expected to trade in the 1.3036/1.2903 area. Being so close to the upper channel boundary means that positive UK Current Account data may breach the upper limit for a while.
