GBP/USD has bounced off its lows, buoyed by an improving market mood. Investors expect the Fed to refrain from withdrawing support. Elevated UK Covid-19 cases are somewhat weighing on the sterling. Markit's preliminary UK Services PMI has badly disappointed investors with 55 points.
The decline of the GBP/USD pair continued after reaching the 1.3600 level. By the middle of Monday's European trading hours, the currency exchange rate had recovered to the 1.3660 level. In addition, analysts have spotted a new downward channel pattern on the pair's hourly candle chart.
If the rate passes the resistance of the descending channel pattern, GBP/USD could aim at the resistance of the weekly simple pivot point at 1.3704 and the 100-hour simple moving average near 1.3700.
Meanwhile, a resumed decline within the borders of the descending channel pattern could once again look for support near the 1.3600 mark before reaching the weekly S1 simple pivot point at 1.3529
