Similarly to other major currencies which are trading against the US Dollar, downside risks were driving the Pound during the previous session. Thus, it was unable to re-test its 1,5-year high of 1.43.
The pair found support for at the 55-hour SMA for a brief period of time; however solid US fundamentals at 1330GMT resulted in a southern breakout of this moving average and eventually the longer-term SMAs, as well. In addition, the bottom boundary of the prevailing seven-week ascending channel also surrendered.
Technical indicators flash bullish signals. However, the expected appreciation is likely to be delayed or even stopped by the aforementioned SMAs in the 1.4170/1.4200 area.
In terms of support, the Pound is restricted by the monthly PP at 1.40.
