GBP/USD To Re-Test Lower Pattern Line

The GBP/USD exchange rate continues to trade within a rising wedge pattern,

From a theoretical perspective, it is likely that the currency pair could bounce off the lower pattern line in the nearest future. In this case the pair could target the psychological level at 1.3740.

Meanwhile, note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages in the 1.3680/1.3700 range. Thus, a breakout south could occur, and the rate could decline to 1.3600/1.3620.