GBP/USD Passes Resistance Levels

The GBP/USD started the week with a sharp surge, which broke various resistance levels. By the middle of Monday’s European trading hours, the pair had reached above the 1.3840 level.

In the meantime, the rate’s recent surge revealed a channel up pattern. The pattern captures the rate’s surge, which has been occurring since March 25. The channel’s borders could provide both resistance and support.

In regards to the near term future, the pair was highly likely going to extend the surge and eventually reach for the resistance of the weekly R1 simple pivot point at 1.3892. However, the rate could also consolidate by trading sideways above the support of the 1.3810/1.3820 zone and the 200-hour simple moving average.