British pound has lost its bullish momentum following Friday's upsurge. As FXStreet’s Eren Sengezer notes, GBP/USD is set to weaken further if buyers fail to defend 1.3500.

Ascending trend line forms key near-term support at 1.3500

“Later in the day, British Prime Minister Boris Johnson is expected to deliver an update on restrictions after assessing the latest Omicron data. In case investors see the negative impact of the Omicron variant on the British economy as a factor that would cause the Bank of England to pause its policy tightening, the GBP could find it difficult to attract buyers.”

“So far, GBP/USD has managed to stay afloat the ascending trend line coming from December 21 at 1.3500. In case a four-hour candle closes below that level, additional losses toward the next static support at 1.3460 could be witnessed before 1.3440 (50-period SMA).”

“On the upside, 1.3550 (December 31 high) aligns as first resistance ahead of 1.3600 (psychological level) and 1.3635 (static level).”