Despite showing high volatility, GBP/USD remained located above the 55-hour SMA on Tuesday and has therefore maintained its movement in a narrow ascending channel.
As a result, the Pound was located between the 55-, 100– and 200-hour moving averages and the weekly PP this morning. The 55– and 100-period SMAs on the 4H time-frame are likewise bounding the rate.
This session includes three sets of noteworthy fundamental releases that are likely to introduce volatility in the market. It is expected that a breakout from any of the two barriers would direct the rate’s further direction today.
In case the 200-hour SMA at 1.4105 is surpassed, the Sterling should target the breached channel line circa 1.4150. On the other hand, a move below its nearest support at 1.4020 is likely to push the Pound down to 1.40.
