Mid-Wednesday was spent with high volatility for the GBP/USD exchange rate.
Trading slightly below the 1.42 mark early in the day, the Sterling managed to use its minor upside potential and shoot up to a downward-sloping trend-line at 1.4225. Along the way, a steep short-term channel up was breached to the downside. A fall did not follow, as the pair was restricted by the 55-hour SMA.
Considering that the Pound has failed to edge higher during the previous two sessions, it is unlikely that the post-Brexit-vote high at 1.4313 is tested today. Thus, the base scenario favours either a breakout of the 55-hour moving average and a test of the 1.41 area or a minor period of consolidation which should squeeze the rate between the trend-line and the 55-hour SMA.
