Technical Analysis: GBP/USD struggles to bypass monthly PP

In line with expectations, the overall optimism related to progress made on tax reform and decreased probability of a government shutdown continued to push the cable downwards.

Although the pair has crossed the 200-hour SMA, the further plunge was temporarily stopped by the monthly PP at located at the 1.3372 level.

But since information background remains positive and the currency rate is located within junior descending channel, it is expected to continue moving to the bottom towards the 1.3340 mark.

In any case, an active surge is unlikely as northern side became protected by a combination of the weekly PP, the 55- and 200-hour SMAs. The only factor that might break the above resistance would be political news especially the one that are related to Brexit.