The GBP/USD broke the channel up pattern at mid-day on Friday. The event resulted in a sharp decline to the 1.3670 level. Afterwards, a short lived recovery found resistance in the 1.3700 mark. By the middle of Monday’s European trading hours, the pair had reached the 1.3650 level.
In the case that the decline passes the support of the 1.3650 mark, the rate might look for support in the weekly S1 simple pivot point at 1.3628. Below the S1 the weekly S2 simple pivot point at 1.3567 could slow down a decline.
Meanwhile, a recovery of the GBP/USD rate is highly likely going to encounter resistance in the 1.3700 mark and the previous week’s low level at 1.3710. Above these levels, the weekly simple pivot point at 1.3729 might keep the rate down.
