GBP/USD was driven by slight momentum downwards on Monday that led the pair towards the 55-hour SMA circa 1.3040. This level, however, was no reached, as morning bulls reversed its direction north. Afterwards, the Sterling continued to move upwards, but with very limited gains. In case fundamental events do not change the current market sentiment, the pair is likely to edge higher and close with gains. Immediate resistance is set by the upper channel line circa 1.3120, while more significant upside barrier is the monthly R1 at 1.3177. In case the rate falls, the 55-hour SMA should support it from further depreciation. By and large, the Pound is expected to trade somewhere near the upper channel boundary on Wednesday morning.
