After breaching the senior channel down on Monday, the Pound managed to retrace from its upper boundary the following day. The rate found support at a support cluster formed by the weekly and monthly S1s circa 1.2950 and has since edged higher just to reach the 1.30 mark. The strong down-trend that guided the price last week has allayed, suggesting that the Pound may eventually appreciate against the US Dollar in this session. An immediate resistance is provided by the 55-hour SMA at 1.3025, while a more distant upside target for today is an intersection of the 100-hour SMA and the monthly PP circa 1.3000. In terms of a downside limit, the pair is not expected to go below the monthly and weekly S1s.
