The GBP/USD recovery passed the resistance of the 55-hour SMA and the 100-hour SMA on Friday. On Monday, the rate paused the surge. After a short investigation, it was discovered that the July low level zone of 1.3575/1.3790 was providing resistance.
In the meantime, the 200-hour SMA had approached and strengthened the resistance zone. In addition, the 55 and 100-hour SMAs were heading to the 1.3500 mark.
If the currency pair surges, it would have to pass the resistance of the 1.3575/1.3790 zone and the 200-hour simple moving average. Above these resistance levels, the pair could find resistance at 1.3650, 1.3700 before reaching for the weekly R1 simple pivot point at 1.3714.
On the other hand, a decline of the pair would look for support in the combination of the 55 and 100-hour SMAs near 1.3500. Below the 1.3500 mark, the rate could look for support in the previous week’s low levels near 1.3410/1.3415.
