GBP/USD analysis: Returns to previous levels

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

The high volatility caused by the US Fed Chairman's testimony resulted in the GBP/USD dropping from the resistance zone at 1.3365 to the 1.3200 mark. However, by the middle of Wednesday's European trading hours, the rate had returned to previous levels, as it had once again used the support zone at 1.3300/1.3380 and was heading to the 1.3367/1.3370 resistance zone.

A breaking of the resistance zone at 1.3367/1.3370 could result in the GBP/USD testing the weekly R1 simple pivot point at 1.3449 and the 1.3450 mark. Although, take into account that the 1.3400 might act as resistance.

On the other hand, a decline might find support in the 50 and 100-hour simple moving averages near 1.3310/1.3320, before reaching the support zone at 1.3300/1.3380.

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Dukascopy Bank Team

Dukascopy Bank SA

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