Although the pair managed to break through a combination of the 55- and 100-hour SMAs yesterday, the surge was stopped a little bit below the 1.3600 mark, thus confirming an existence of a strong barrier in that area. It appears that during this whole trading week movement of the exchange rate was guided by some sort of rectangle pattern whose resistance line was located near the 1.3600 level and the support line near the 1.3475 level. On the one hand, there is a high chance that the pair will spend the rest of the day in this established formation, as it faces no significant pressure from technical indicators. On the other hand, a speech that will be delivered by PM May about post-Brexit relations with the EU is likely to have a notable impact on the value of Pound.
