Price action in the British pound sterling is on track to close with muted gains on Monday. This comes as the GBPUSD attempted to push higher intraday above the 1.3700 level.
However, prices pulled back lower to briefly test the medium-term trendline. From a daily chart perspective, a break of this trendline could possibly see prices once again sliding towards the 1.3500 level of support.
The stochastics oscillator on the four-hour chart is currently pushing lower suggesting that the momentum might be heading to the downside.
As a result, we expect the cable to continue trading somewhat mixed over the coming few sessions.
The test of 1.3611 will be crucial as a breakdown below this level will no doubt open the way for the GBPUSD to test the 1.3500 level.
