GBPUSD Analysis: Fails to break through weekly R2

Contrary to expectations, the Pound did move horizontally for long but instead tried to break through the weekly R1 at 1.3077. A reaction from release of information on the US ISM Non-Manufacturing PMI was barely enough to neutralize this attempt. In result, today the pair remains squeezed between the weekly R2 from the top and the weekly R1 from the bottom. From a technical perspective, the southern direction contains other various barriers, such as the approaching 55- and 100-hour SMAs. In this sense, the further surge is a more likely scenario. On the other hand, slightly above the 1.3070 level the pair is likely to encounter the upper line of a dominant descending channel, which might turn around the pair and in this way finally confirm its existence.