Morning outlook - GBP/USD reaches monthly R1 at 1.3208
- Due to positive numbers that were revealed during a release on the UK Manufacturing Production, the Pound caught an upside momentum that helped it to reach the monthly R1 at 1.1320.
- However, this barrier appeared to be strong enough to prevent the further surge.
- Given that the southern direction is secured by the 55-hour SMA and the updated weekly PP at 1.3110 as well as the approaching 100- and 200-hour SMAs, an extensive drop is not expected to follow.
- In contrast, these indicators will motivate the pair to try break to the top. Except for the above monthly R1 the next closest resistance barrier is located only at 1.3310.
- In addition, there is a need to take into account an existence of a larger ascending channel (tendency of the pair to surge to its upper boundary).
- Yet, these projections can be altered, as the Sterling is expected to be quite heavily affected by a number of data releases this week.
