On Wednesday, the GBP/USD passed one support level after another. During the day, all of the technical support levels were passed and the last one of them, the 100-hour simple moving average, was pierced. However, this did not result in a decline, as the combination of the 100-hour SMA and the 1.3550 eventually held and caused a recovery.
By the start of Thursday’s European trading hours, the GBP/USD pair had reached above the 100 and 200-hour simple moving averages and the weekly simple pivot point from 1.3563 to 1.3580. In addition, the pair pierced the last technical level, the 55-hour SMA, at 1.3600.
If the GBP/USD clearly passes the resistance of the 1.3600 mark and the 55-hour SMA, the pair could potentially reach for this week’s high level zone above the 1.3640 level. Above this zone, the pair might encounter resistance first in the 1.3700 level and afterwards, the 1.3714 level, where the weekly R1 simple pivot point is located at.
On the other hand, a decline would have to move through the support of the 100 and 200-hour SMAs and the weekly simple pivot point at 1.3590/1.3563, before testing the support of the 1.3550 mark.
