GBP/USD Analysis: Respects Hourly SMA

Technical analysis of Forex market

The GBP/USD found support on Wednesday and Thursday above the 1.3400 level. The support zone has been marked on the hourly candle chart.

After finding support, the pair surged to the resistance of the 55-hour simple moving average and the 1.3500 level. These levels provided resistance and the 55-hour SMA began to push the rate down. By the middle of Friday’s trading hours, the currency exchange rate had been pushed below the 1.3450 level.

If the simple moving average continues to provide resistance and push the rate down, the GBP/USD could once again look for support in the 1.3410/1.3417 zone. Below this zone, the 1.3350 and 1.3300 levels could provide additional support.

On the other hand, the SMA could fail to provide resistance. In this case the combination of the weekly S2 simple pivot point at 1.3537 and the 100-hour SMA near 1.3540 might serve as resistance.