Following a 121-pip fall mid-Thursday, the Sterling entered a minor period of consolidation slightly below the 200-hour SMA. Any attempts to breach this moving average was disrupted by a massive hourly plunge which pushed the rate 0.76% or 107 pips lower down to a two-month trend-line.
By Friday morning, the pair had not still recovered from this fall, and it was trading in a narrow range near the 1.4080 mark.
It is more likely that this session marks a bullish reversal, as the market sentiment is expected to turn bullish after this two-day decline. The upside target should be the combined resistance of the 55– and 200-hour SMAs and the weekly PP at 1.42.
In case bulls fail to accelerate, the Pound might still edge slightly lower down to the senior channel, the monthly PP and the weekly S1 at 1.40.
