The GBP/USD retraced back up to the 55 and 200-hour simple moving averages and the upper trend line of the channel down pattern. However, during the Asian session, the exchange rate broke the channel pattern and the resistance of the 55 and 200-hour SMAs. On Wednesday morning, the pair confirmed the previous resistance of the channel pattern as support before starting to trade between the hourly simple moving averages.
In regards to the near term future, the rate could break the resistance of the 100-hour SMA and the 1.3920 mark. In this case scenario the rate would first test the 1.3960 level and afterwards the 1.4000 mark.
On the other hand, the pair might pass the support of the 55 and 200-hour SMAs near 1.3890 and test the support of the broken pattern’s resistance line.