GBP/USD Breaks Pattern

On Wednesday, the resistance of the 55 and 100-hour simple moving averages was enough for the rate to decline and break the channel up pattern. Moreover, the weekly S1 simple pivot point was ignored during the decline.

In the meantime, it was spotted that the 1.3720/1.3725 zone was providing the currency exchange rate with support. The GBP/USD could trade above this zone until it is approached by the resistance of the 55, 100 and 200-hour simple moving averages.

In the case of the SMAs pushing the rate through the support zone, the rate could look for support first in the 1.3700 mark and afterwards the weekly S2 simple pivot point at 1.3651 and the 1.3650 mark.

On the other hand, a failure of the SMAs could result in a surge to the weekly simple pivot point at 1.3798 and the 1.3800 mark.