No significant fundamentals that could add some pressure are not scheduled for today. Thus, the Sterling should continue trading along the 55-hour moving average. The nearest resistance is set by a channel line or the weekly R1 near 1.4220 and 1.4264, respectively.
In case the 55-hour is breached, losses should not exceed the 1.41 area where the 100-hour moving average and the weekly PP are located.
The inability of the US Dollar to gain momentum on Monday had positive impact on the GBP/USD exchange rate. The morning and evening sessions did not introduce significant changes to the overall price level, while mid-day was dominated by bulls.
The pair remains bullish for this week, and it seems that traders might target the 2017/2018 high of 1.4313. In case this level is breached, the current surge is expected to continue. This move is unlikely to day, as bulls still need to gather the necessary momentum to do so.
Given that technical indicators are gradually moving away from the overbought area might suggest either consolidation or a minor decline today. In case no fundamentals erase this assumption, this movement south should not exceed the 55– and 100-hour SMAs near 1.4180.
Contrary to the slight period of consolidation which began mid-Monday, the GBP/USD exchange rate was shaken by a strong sell-off during the following session. The pair plunged 1.04% in six hours just to be followed by another surge towards the 1.42 area.
Given that the Pound is once again located above the 55– and 100-hour SMAs, it seems that this currency could once again be set for a surge towards the 1.4313 mark—its highest position since the Brexit vote. Thus, the pair is likely to edge higher during the following hours.
The weekly R1 near 1.4260, however, might hinder or even halt the pair in the same manner as on Monday.
Meanwhile, the US is to release its final GDP figures at 1230GMT. In case of bearish pressure, 1.4120 is unlikely to be breached.
Downside risks dominated the GBP/USD exchange rate on Wednesday. The failure to surpass the 55-hour SMA early in the session was followed by a decline in price. This bearish momentum was strengthened mid-session in response to solid US GDP data. The market reaction to this fundamental release was limited 40 pips.
A southern breakout of the 200-hour SMA, the monthly R1 and the weekly PP could point to further decline within this session. Downward potential is until the 1.40 mark.
Conversely, oversold technical indicators suggest the opposite. This bullish scenario is likewise reinforced by the fact that the Pound has reached the bottom boundary of a four-week channel circa 1.4040. In case the 1.4150 area is breached, the pair is likely to struggle near the 55– and 100-hour SMAs at 1.4150.
GBP/USD continued to weaken on Thursday but with considerably lower volatility than during the two preceding sessions.
After failing to surpass the strong resistance of the weekly PP, the monthly R1 and the 200-hour SMA near the psychological 1.41 mark, the Sterling breached the prevailing three-week channel and pushed lower until 1.4030 was reached on Friday morning.
The Sterling has enough room to move both directions today, as the nearest barriers are set only at 1.41 and 1.3960. The pair is most likely to remain between these two levels in this session. It is expected that a retracement from the breached channel might follow, thus allowing for a minor recovery of the Pound.
In general, this session should not introduce any changes in price, as US markets are closed due to Easter Holidays.