The surge, which followed the GBP/USD breaking the channel down pattern and the resistance of the 1.3800 mark, has found resistance. Namely, since the middle of Monday’s trading hours, the pair has been fluctuating sideways below the weekly R1 simple pivot point at 1.3835.
If the pair breaks the resistance of the pivot point, it could reach for the resistance zone that surrounds the 1.3900 mark. The zone consists of July high levels. In the case of the zone being passed, most likely the weekly R2 simple pivot point at 1.3919 would provide resistance.
Meanwhile, a potential decline would most likely look for support in the 1.3800 mark. Below the 1.3800 level, the hourly simple moving averages could provide additional support.
