Due to signs of negative temps of growth of the British retail sales, the Pound continued to depreciate against the Dollar. In result of the downfall, the cable slipped to the 1.3100 zone but then made a rebound, which confirmed existence of a large ascending channel. Such outcome suggests that the pair is likely to climb back to the area near the 1.3160 mark. In larger perspective the further recovery of the Sterling seems complicated, as northern side is reliably protected not only by a combination of moving averages, but also by the upper-trend line of a dominant descending channel, which most probably will prevail over less robust ascending channel. On the other hand, expectations of a possible interest rate hike and uncertainty related to Brexit negotiations do not make this scenario undoubted.
