Range Markets

As markets did not pay much attention to the UK Inflation Report Hearings, the cable continued to slowly surge along the rising 55-hour SMA within the junior ascending channel. By now, the currency pair has practically bypassed the upper boundaries of both senior channels.

A small positive signal, such as the Autumn Forecast Statement, would be enough to make a decisive breakthrough. Once this happens, the exchange rate will face no resistance level up until the weekly R1 located at the 1.3300 level.

However, the release of data on the US Core Durable Goods Orders alter this scenario and drag the currency pair back to the monthly PP at 1.3238.

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