GBP/USD limited by 100-hour SMA

The Pound responded negatively to weak UK Manufacturing PMI mid-Monday, thus pushing the rate through the bottom channel boundary. The subsequent action did not form any distinctive direction and resulted in slight volatility sideways. The 100-hour SMA was breached to the downside with little hindrance; however, it did continue to function effectively as a resistance level. It seems that the bearish sentiment may prevail in the upcoming hours prior to edging higher late Tuesday. Immediate support is formed by the 100– and 55-hour SMAs at 1.2958 and 1.2983, respectively. Nevertheless, the main upside limit is considered to be circa 1.3029, as the Sterling had already failed to overcome this level for two consecutive sessions, thus forming a double top.