Bears prevailed on Monday’s session, pushing the Sterling below the monthly PP at 1.2883. Subsequently, the pair fluctuated around the 20-hour SMA, but nevertheless failed to surpass the aforementioned PP. Apart from some bigger leaps in both directions, the pair demonstrated low volatility that resulted from a lack of market shakers. The same situation is likely to occur in this session, forming a consolidation phase. In this case, it should be apparent that the channel down will not hold any longer and some alteration may be due. Given the bearish sentiment, the pair may trade lower in the upcoming hours; however, upside risks should guide the Pound north in the evening. Gains may be capped at 1.2926, while the bottom limit should be circa 1.2828.
