Even though the general tendency for the pair was southwards on Wednesday, GBP/USD failed to make a notable advance in this direction. From the upside, the Sterling was restricted by a two-week high of 1.40, while support was provided by the 38.20% Fibo at 1.3957.
As apparent on the chart, the pair is currently trading in several channels that flash opposing signals. However, technical indicators demonstrate that some upside potential still exists in the market, thus favouring a rate increase up to the 1.4015 territory where the weekly R2 and the senior channel are located.
This appreciation is unlikely to be as steep as the drawn one-week channel, thus pointing to a more gradual increase today. Meanwhile, a possible fall should not exceed the weekly R1 and the monthly PP at 1.3830.
