GBP/USD analysis: Remains in range

GBP/USD

The GBP/USD failed to pass the resistance zone near the 1.3900 level. Namely, the rate bounced off exactly the 1.3900 mark. This was followed by a decline to the support zone of the July 13 and 14 low levels just above the 1.3800 mark.

Meanwhile, note that, by large, the rate ignores the hourly simple moving averages.

In the near term future, the rate was expected to trade between the 1.3800 and 1.3900 levels despite the high volatility range of 100 base points. Eventually, the rate would break out of this range.

A break out above the 1.3900 level would face the resistance of the 1.3950 mark and the weekly R1 simple pivot point at 1.3963. Above these levels, the 1.4000 mark would provide resistance.

On the other hand, a decline below 1.3800 would immediately test the support of the weekly S1 simple pivot point at 1.3796. Afterwards, the rate would have no support as low as the July low levels near 1.3740.