Since the middle of Monday’s trading, the GBP/USD has continued to trade between the 1.3700 and 1.3750 levels. On Wednesday morning, the rate was approached by the support of the 55-hour simple moving average near 1.3710 and the 200-hour simple moving average at 1.3740.
A breaking of the resistance of the 1.3750 level could result in a surge to the 1.3800 mark. Note that the 1.3800 level’s resistance was being strengthened by the weekly R1 simple pivot point at 1.3805.
However, a decline below the 1.3700 level and the weekly simple pivot point at 1.3704 could look for support in the 100-hour simple moving average at 1.3680. A failure of the SMA to provide support would most likely result in another decline to the 1.3600 mark.
