Despite edging higher in the wake of solid earnings data, the Pound failed to sustain its upward momentum on Wednesday and returned near the 1.2850 mark—a level already proven to be a strong support.
The rate managed to accelerate in the second half of the session and push through the weekly S2 and the 55-hour SMA at 1.2885.
By and large, the Pound is expected to appreciate against the Greenback today, setting the weekly and monthly S1s as a near-term target. Reinforced by the 100-hour SMA, this area could be a possible stopping point. Meanwhile, weak fundamentals may guide the pair back to 1.2850.
