The release of worse than expected US employment data caused a surge of the GBP/USD on Friday. The surge was stopped by the upper trend line of the channel up pattern, which has guided the rate since the middle of August. The event was followed up by a decline.
On Monday morning, the decline was heading for the combined support of the weekly simple pivot point and the 55-hour simple moving average at 1.3833.
In the case that the rate recovers from the pivot point and the 55-hour SMA, the GBP/USD could surge. A potential surge would most likely test the August high levels near the 1.3880 level. Above the 1.3880 level, the 1.3900 might provide resistance before the pair aims at the weekly R1 simple pivot point at 1.3934.
On the other hand, a decline of the pair below the 1.3830 level could look for support in the 1.3800 level and the 100-hour simple moving average. Below the 1.3800 mark, the lower trend line of the channel up pattern might hold the rate up.
