The Sterling continues to weaken against the US Dollar for the second consecutive session. As a result, the pair breached an important support level, which is also the 2018 low, at 1.3462.
On Monday morning, the Pound was trading near the weekly S1 and the bottom boundary of a three-week channel at 1.34. It is expected that the pair still edges lower down to this psychological mark during the first part of the day. However, the general direction should nevertheless be northwards this week. The nearest significant resistance is the 55-, 100– and 200-hour SMAs and the weekly PP circa 1.3515.
Given that no important data releases are scheduled for today, it is unlikely that the 1.3400/1.3515 range is breached in this session.
