The movement of GBP/USD was dominated primarily by the 55– and 100-hour SMAs during the previous session. The Sterling managed to appreciate mid-session but was nevertheless pressured lower by above moving averages.
By Wednesday morning, the pair was located near the 2018 low of 1.34. It is likely that the 55-hour SMA continues to provide bearish pressure for the pair during the following hours, as well. However, the weekly S2 at 1.3350 should remain intact.
In the event of solid British CPI data, the Pound is likely to surge past the 1.3460 area to test the 200-hour SMA and the weekly PP at 1.3510. Additional volatility should be added by the FOMC Meeting Minutes published at 1800GMT.
