The Sterling has been trading in a channel down against the US Dollar since early May. Thus, the pair has since not been able to form a distinctive movement either direction. No changes to the pair’s positioning were likewise introduced on Friday, as the relatively calm session left the rate near the 55-, 100– and 200-hour SMAs.
In case the two shorter-term SMAs and the weekly PP are breached at 1.3540, the rate is likely to edge lower and test its next support—the weekly S1 at 1.3465. A fall below this level is very unlikely, especially if no fundamental releases are scheduled for today.
Meanwhile, a reversal from 1.3540 would send the Pound for a test of the weekly R1 at 1.3622. A possible daily high should be the weekly S2 and the breached senior channel near 1.37.
