During the early hours of Friday’s trading, the GBP/USD passed the support zone above the 1.3720 level. This support kept the rate up since the middle of Wednesday’s trading. The failing of the support resulted in a sharp move down.
In the near term future, the rate was expected to test the support of the March low levels in the 1.3670/1.3675 zone.
In the case of the zone holding, the GBP/USD would most likely consolidate by trading sideways or retracing back up to the 1.3700 level. The rate could trade sideways until it is caught up by the resistance of the 55-hour SMA.
On the other hand, a passing of the March low levels could look for support in the 1.3650 level and the weekly S2 simple pivot point at 1.3651
