The GBP/USD bounced off the combined resistance of the upper trend line of the channel down pattern, the 100 and 200-hour simple moving averages on Monday. On Tuesday, the rate had retreated to the support of the 1.3860 level, which provided support on June 22.
In the near term future, the pair was expected to fluctuate sideways until resistance approaches from above. Namely, the 55, 100, and 200-hour simple moving averages could push the pair down. However, the pair could trade sideways until it not only reaches the SMAs but also the upper trend line of the channel down pattern.
Meanwhile, a potential decline below the trend line could occur due to a fundamental event. In this case, the pair would have no support as low as the 1.3800 marks.
