The February 12 low level of 1.3775 provided the GBP/USD with support even before it was properly reached. The rate reversed its direction at mid-day on Friday. Since then, the rate has been testing the resistance of the 1.3830/1.3870 zone. However, it could be observed that most resistance was provided exactly by the 1.3870 level.
In the near term future, the rate was expected to be reached by the resistance of the 55-hour simple moving average. This SMA could strengthen the 1.3870 mark and cause a decline to the 1.3775 level.
On the other hand, if the SMA fails, the pair might continue to trade sideways in the large range between 1.3775 and 1.3870.
