Bearish momentum prevailed during the first part of Tuesday, thus sending the Sterling 112 pips lower against the Greenback. The pair subsequently recovered some lost positions but nevertheless had failed to surpass the 1.3517 mark by Wednesday morning.
It seems that GBP/USD should continue moving higher in this session. However, large gains are unlikely to occur, as traders might be reluctant to push the pair above the strong resistance of the 55-, 100– and 200-hour SMAs at 1.3550. The 55-period SMA (on 4H time-frame) is likewise located at this level.
This factors is likely to activate bears for another decline. Technical indicators are also flashing bearish signals. The nearest support is set by the weekly S1 and a channel line at 1.3465 and 1.3450, respectively.
