On Tuesday, the Sterling was restrained by a combination of the 55– and 100-hour SMAs that limited its gains until the 1.2950 mark. Thus, GBP/USD was characterised by a consolidation period, failing to form a distinctive move either direction. However, the pair did trade in a slight movement downwards that may result in a formation of a channel down if sustained. Technical indicators are generally neutral for the upcoming hours, but slightly bullish on the daily time-frame. However, it is more likely that the rate trades lower and tests the monthly PP at 1.2883 early on Thursday. This scenario depends on the rate’s inability to cross the 55-hour SMA. On the contrary, the Sterling may also continue to move sideways, thus surpassing the 55-hour SMA at some point.
