The release of the US Consumer Price Index caused two hours of high volatility during the mid-day of Wednesday. It was followed up by a decline. By the middle of Thursday’s trading, the rate had passed the support of the 100-hour simple moving average at 1.4078 and the weekly R1 simple pivot point at 1.4064.
In the near term future, the rate was expected to continue to decline, as it had no technical support as low as the 200-hour simple moving average near 1.3985.
On the other hand, the rate appeared to be finding support in the round exchange rate level of 1.4050. If the 1.4050 mark holds, the GBP/USD would face the technical resistance of the weekly R1 simple pivot point at 1.406 and the 55 and 100-hour simple moving averages near 1.4110 and 1.4080.
