GBP/USD Decline Finds Support

The GBP/USD remains in a channel down pattern, which has guided the rate since March 18. However, the decline has not reached a new low level, as the rate appears to have found support in the 1.3670/1.3675 level.

In regards to the near term future, the rate was expected to get squeezed in between the mentioned support zone and the upper trend line of the descending channel pattern.

If the currency exchange rate passes the support zone of the 1.3670/1.3675 level, it would most likely reach for the support of the 1.3600 level, which was supported by the weekly S3 simple pivot point. However, take into account that the rate could pause at round exchange rate levels. For example, the 1.3650 managed to provide both resistance and support in early February.

On the other hand, the GBP/USD could pass the resistance line of the channel down pattern and the resistance of the weekly S2 simple pivot point at 1.3702. In addition, the round exchange rate level of 1.3700 could provide psychological resistance. If these levels would fail to keep the rate down, the pair could reach the 55-hour simple moving average near 1.3735.