The uptrend remains for GBP/USD with market participants quick to buy the dip. Friday's price action following the unsurprisingly weak PMI figures can be described as somewhat of an overreaction and thus today's tone appears to be a paring of Friday's selling.
From a theoretical perspective, GBP/USD exchange rate continues to follow the rising wedge pattern. It is likely that the currency pair could re-test the lower pattern ascending support line around 1.3600 psychological round figure mark. If the given pattern holds, a back up could occur.
From current levels, multi-year tops, near the 1.3745 region, now seems to act as immediate resistance. Some follow-through buying might now assist bulls to aim to reclaim the 1.3800 round-figure mark. The momentum could get extended and has the potential to push the pair further towards the top boundary of the mentioned channel.
On the flip side, Friday's swing low, around the 1.3635 region, might now protect the immediate downside and is followed by the 1.3600 round-figure mark. A push below that will see sellers regain near-term control and potentially look to post a daily close below trendline support. A sustained break below might prompt some technical selling and turn the pair vulnerable to accelerate the corrective slide towards the key 1.3500 psychological mark
