GBP/USD Consolidated

The Sterling managed to advance some 85 pips against the US Dollar during the European session on Monday. Further upside momentum was disrupted by the combined resistance of the weekly and monthly pivot points around 1.3860.

The inability of bears to take advantage of this situation resulted in a slight period of consolidation between 1.3860 and 1.3830. Given that the northern barrier is likewise guarded by the 200-hour SMA, bulls are unlikely to gather enough momentum for a breakout.

Thus, that the pair could edge lower during the week and attempt to go below 1.38. Meanwhile, the medium-term pattern suggests that the Sterling is likely to appreciate this month; thus, the 1.3860 should eventually be breached to allow for a surge up to 1.3950.

Chart: GBP/USD H4