Some downside movement was still apparent in the market on Wednesday, as the Pound still tried to reach the bottom boundary of a seven-month channel and the weekly S2 near 1.3550. From the upside, it was pressured by the 55-hour SMA.
Nevertheless, yesterday’s trading session demonstrated that the strong bearish momentum which had guided the pair for the three previous sessions was gone. Thus, it seems that bulls might finally be ready to push the pair away from the aforementioned long-term support. This upward movement should not be steep, as the 1.37 area is restricted by the 55– and 100-hour moving averages and the weekly S1.
In case no fundamentals disrupt this assumption, it is more likely that the pair consolidates today prior to picking up speed on Friday or early next week.
