During the previous trading session the cable was in perfect situation to make a rebound from combined support level formed by the 55-hour SMA, the weekly PP as well as the 38.2% retracement level and make a breakout from the ascending triangle pattern. However, another political scandal in the British government led to rapid sell-off of the Pound. As a result, the exchange rate got in a tricky situation. On the one hand, further road to the south is blocked by the 100-day SMA and the lower line of a large symmetrical triangle. This disposition supports intention of bulls to return the pair back to the pre-fall 1.3175 level. However, in order to achieve this goal, the rate needs to pass through combined resistance set up by the above retracement level, the weekly PP and the 55-hour SMA.
