Contrary to the relatively flat movement sideways that was apparent during the last two trading days, the Pound surged against the US Dollar mid-Wednesday after not being able to pass through the weekly PP at 1.3019. Along the way, the rate was supported by the 55– and 200-hour SMAs and the weekly R1 until the upper boundary of the ascending wedge circa 1.3160 was reached on Thursday morning. It seems that the previous momentum upwards has lost some ground, indicating to a possible reversal south. However, the Pound may still test either the monthly R1 or the weekly R2 at 1.3177 and 1.3211, respectively. In general, the rate should trade lower, thus respecting the bounds of the aforementioned wedge at least until the 1.3040/80 area where the up-trend line is located.
