GBP/USD Trades Below 1.3740

Since Friday afternoon, the GBP/USD exchange rate has been testing the psychological level at 1.3740.

From a technical point of view, it is unlikely that some downside potential could prevail in the market due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3670/1.3690 range.

The currency pair could trade upwards in the nearest future. In this the case the pair could target the weekly R1 at 1.3809. However, if the predetermined support does not hold, the pair could bounce off from the 1.3740 mark to the weekly S1 at 1.3618.