The Pound was driven by downside risks against the US Dollar on Tuesday. The 55-hour SMA proved to be an unbreakable barrier for the rate, thus sending the Sterling past the psychological 1.33 level until support at the weekly S1 at 1.3232 was found.
The pair has failed to breach this moving average on several occasions during the past two weeks which shows that the Pound generally remains under the bearish influence. Some downside potential is still apparent in the market.
Even though technical indicators on the 1H chart are starting to recover, longer time-frames still lag behind. This suggests that gains could be limited today. The nearest resistance that is expected to hold firm is set by the 55– and 100-hour SMAs at 1.33. Meanwhile, support is provided by the weekly S2 at 1.3165.
