Analysis

GBP/USD analysis: Respects pivot point

GBP/USD

On Tuesday, the GBP/USD surged and reached the resistance of the weekly R1 simple pivot point at the 1.3830 level. The pivot point's resistance held and caused a decline. By the middle of Wednesday's European trading hours, the decline had passed the support of the 55-hour SMA at 1.3769 and was heading to the 1.3750 mark.

In the case that the 1.3750 mark, which could be supported by the 100-hour SMA, holds, the EUR/USD would recover. A potential recovery might find resistance first in the 55-hour SMA at 1.3770. Afterward, the weekly R1 simple pivot point at 1.3830 might serve as resistance.

On the other hand, a decline below the 1.3750 mark would highly likely result in a decline to the weekly simple pivot point at the 1.3700 mark. Note that the round exchange rate of 1.3700 can provide support and resistance on its own.

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