The Sterling continues to depreciate against the US Dollar for the second consecutive session. This movement has been constrained in a rather flat channel down.
In case the current sentiment is to persist, the pair is likely to reach the lower boundary of a medium-term channel circa 1.39. The 200-hour SMA is likewise located near this area.
Technical indicators, however, are more favouable of the bullish scenario. At the time of this analysis, the pair was trading between two strong barriers one of which being the 55-hour SMA and the 38.20% Fibo retracement at 1.3960.
The prevalence of bulls would result in a breakout of this resistance and a subsequent surge towards the three-week high at 1.40 where the senior channel is located.
