Despite the pressure from three moving averages as well as from other technical indicators, the pair ended the day near the 1.3420 mark. Today the cable is expected to continue the rally due to absence of any notable barriers on its way up until the 50% level located at 1.3485. In case of appreciation of the buck, a combination of the weekly PP and the 200-hour or the monthly PP and the 100-hour should constrain the downfall. However, these barriers might be relatively easy broken due to the upcoming Bank of England meeting as well as release of information on the UK and US Retail Sales.
In result of the previous trading session the currency exchange rate made a breakout from the rising wedge formation. However, as the southern side was covered by the weekly PP and the 200-hour SMA the pair could not fall below the 1.3400 mark. In a similar manner, a resistance zone located between the 1.3440 and 1.3448 levels did not allow the pair to climb higher as well.
Allocation of pending orders as well as recent progress made on tax reform suggests that there is not much interest to acquire the Pound. On the other hand, the rising 55-, 100- and 200-hour SMAs as well as existence of a junior ascending channel are likely to continue elevating the currency rate towards the upper trend-line of a senior descending channel.