The GBP/USD has passed the resistance of the 200-hour simple moving average. It has resulted in a surge, which on Thursday aimed at the 1.3982 level, where a weekly R1 simple pivot point was located at. Meanwhile, a channel up pattern was spotted, which has guided the rate during this week.
In the case of the rate passing the pivot point at 1.3982, the pair could test the resistance of the 1.4000 mark. Afterwards, if the 1.4000 doesn’t hold, the pair could gradually surge as high as 1.4100 while remaining in the channel up pattern.
On the other hand, if the pivot point holds, the rate could trade sideways until Monday, when the currency rate would reach the lower trend line of the channel up pattern. In addition, a drop might happen. A potential decline would test the supporting trend line and the 55 and 200-hour simple moving averages near 1.3900.
