The GBP/USD rate retreated on Monday morning to the support of the lower trend line of a channel up pattern, which has guided the pair since October 12. Future forecasts were based upon whether or not the support holds.
In the case of a passing of the support of the channel up pattern, the GBP/USD might find support in the 55-hour simple moving average near 1.3712. Below the 55-hour SMA, the weekly simple pivot point at 1.3700 might act as a support level. Although, the 1.3700 has been providing both support and resistance on its own.
However, a potential surge of the rate might encounter resistance in the Friday’s high levels at 1.3765 and 1.3775. Above the high levels, the weekly R1 at 1.3830 might keep the rate down.
