On Monday, a channel down pattern was spotted. The pattern was formed in the aftermath of the rate passing the resistance of the 1.3940 level and testing the 1.4000 mark. In the meantime, note that the pattern’s upper trend line was being strengthened by the resistance of the 200-hour simple moving average.
If the pattern’s resistance holds on Monday, the rate would decline to the support of the weekly simple pivot point at 1.3892. In the case of the pivot point being passed, the GBP/USD would have no support, except the lower trend line of the channel down pattern.
On the other hand, a breaking of the resistance of the pattern could result in the pair once again testing the 1.4000 mark. Note that the 1.4000 mark was being strengthened by the resistance of the weekly R1 simple pivot point at 1.3997.
