Despite flashing bearish signals early on Monday, the Sterling managed to maintain its high positioning against the US Dollar and even push higher during the previous session.
As a result, the pair was trading near the weekly R1 and a minor trend-line at 1.4140 this morning. Apart from this resistance, the Pound is constrained by the weekly R2 and a medium-term trend at 1.42 and 1.4240, respectively.
Technical indicators have already started to move lower; thus, the given pair is expected to follow any time soon. The daily low should remain the same as yesterday—the 1.4055/80 territory where the 55-, 100– and 200-hour SMAs and the weekly PP is located.
This support is likely to provide a strong barrier for several sessions, as the 55– and 100-period SMAs on the 4H time-frame are likewise located there.
