Since the second part of Tuesday’s trading, the GBP/USD has been finding support and resistance in round exchange rate levels. Namely, it found support in 1.3710 and 1.3720 and resistance was provided by 1.3750 and 1.3760.
On Wednesday morning, the rate was approaching the resistance of the 1.3780 level, which was strengthened by the 200-hour simple moving average and the weekly simple pivot point.
In the case of the 1.3780 level holding, the rate would gradually decline to the support of the 1.3700 level. Note that short term support is expected to be provided by the mentioned round exchange rate levels.
On the other hand, a piercing of the 1.3780 level would test the 1.3800 mark and afterwards the 1.3850 level.