Monday’s trading session was calm for the GBP/USD currency pair, as it remained trading sideways for the second consecutive session. Despite bears failing to push the pair down to the weekly S1 at 1.3979, the expected up-move towards 1.3885 did not occur either.
Technical indicators are starting to recover; thus, the price should follow soon. A strong surge is likely to be limited by the nearby-located 55-hour SMA. The pair, however, should eventually reach the 1.39—a move which might actually be boosted by today’s British Manufacturing PMI and the ISM Manufacturing PMI released at 0830GMT and 1400GMT, respectively.
It is unlikely that the 1.39 level is breached in this session, and the same assumption holds for the 1.3660 area where the senior channel and the weekly S1 are located.
