GBP/USD analysis: Remains below 1.4000

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

In the aftermath of the US Federal Reserve caused drop, the GBP/USD began a recovery, which appeared to have ended on Tuesday. Namely, the rate declined from a resistance zone just below the 1.3950 level, as soon as it was being approached from above by the 100-hour simple moving average.

If the 100-hour SMA manages to continue to provide resistance, the pair could decline to the support of the 1.3800 level. The 1.3800 level reversed the Federal Reserve decline. However, if the 1.3800 mark is passed, the GBP/USD would not have technical support as low as the weekly S1 simple pivot point at 1.3690.

On the other hand, a potential surge above the 100-hour SMA would most likely test the resistance of the 1.3950 level. In the case of the 1.3950 being passed, the rate could return to the 1.4000 mark.

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Dukascopy Bank Team

Dukascopy Bank SA

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