On Wednesday morning, the GBP/USD confirmed that it would trade in the borders of the recently discovered channel up pattern. It did so by respecting the lower trend line of the pattern and recovering from it. In theory, the pair should now continue to surge in the pattern’s borders until it would reach the upper trend line of the channel.
In the meantime, note that the currency exchange rate passed the support of the hourly simple moving averages, the weekly simple pivot point and the support zone of 1.3800/1.3820. It appeared that these levels were eventually passed despite holding for a short time.
By the middle of the day’s trading hours, the rate had reached above the 1.3820 level and was finding resistance in the 100-hour simple moving average near 1.3840. If the rate manages to pass the resistance of the 100-hour SMA, the 55-hour SMA at 1.3857 could provide resistance. If both SMAs fail, the rate could reach for the upper trend line of the pattern.
On the other hand, support to the rate was being provided by the 1.3820/1.3800 zone, the 200-hour SMA near 1.3805 and the weekly simple pivot point at 1.3798. If these levels are passed, the pair would look for support in the channel up pattern’s lower trend line.
