GBP/USD demonstrated high volatility in both directions on Thursday. The pair, however, managed to remain within the bounds of a short-term channel, at the same time having returned to its Wednesday-morning level today.
It is expected that the Sterling maintains its slight tendency downwards during the first part of the day due to the combined resistance of the 55– and 100-hour SMAs and the 38.20% Fibo retracement near 1.3950.
However, this session is dependent on the US and UK GDP data releases that are very likely to introduce quite significant volatility in the market. Thus, the possible trading range for today should be relatively wide.
Gains are limited by the 200-hour SMA at 1.41, while the monthly S1 and the weekly S2 are supporting the Pound at 1.3740.
