On Tuesday, the GBP/USD currency exchange rate bounced off the resistance of the weekly R1 simple pivot point and the 1.3830 mark. The following decline reached the 200-hour simple moving average near 1.3760 and began to trade around the moving average.
However, on Wednesday morning, the 100-hour simple moving average provided resistance at 1.3780. The event resulted in a sharp move down to the 1.3720 level.
In the case that the decline of the GBP/USD continues, the rate might look for support in the weekly S1 simple pivot point at 1.3706. Immediately below the pivot point, the 1.3700 mark could provide support.
On the other hand, a recovery of the pair would most likely encounter resistance in the combination of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.3770/1.3775.
