The support zone that surrounds the 1.3850 mark held. Namely, after testing the zone for nine hours, the GBP/USD began a recovery. By the middle of Wednesday’s European trading hours, the rate had reached the 1.3990 level. In addition, the resistance of the 100-hour simple moving average was passed.
In the near term future, the rate was likely going to reach for the 1.4000 mark. If this level is passed, the 200-hour SMA and the weekly simple pivot point at 1.4020 would provide resistance.
On the other hand, the 1.4000 level could hold and cause a decline. In this scenario the rate would look for support in the 55-hour simple moving average at 1.3937. If the SMA fails to provide technical support, the rate could once again reach for the resistance zone near 1.3850.
