Since last week, the GBP/USD exchange rate has been testing the resistance level formed by the weekly resistance at 1.340. GBP/USD trims monthly gains while declining in the last week to re-test 1.3300.
GBP/USD made a downside break of an ascending triangle and eyes for further weakness. A clear downside break of an ascending trend line from November 02, may directs GBP/USD bears toward 1.320.
Alternatively, the monthly high near 1.3400 adds to the upside filters. Attempts to break above the ceiling of 1.3400 have been unsuccessful, yet there is still room for a breakout. However, any subsequent move up is more likely to meet resistance near the top barrier at 1.3390- 1.3400 round figure mark region.
In the meantime, the formation of bearish divergence ( MACD) suggest a reversal to the downtrend could occur. Trading for a bearish move at this time is irrelevant since price is consolidating between 1.339-1.330. If a breakout below 1.33 round figure mark is seen, the trend reversal from MACD bearish divergence is confirmed. This would probably ignite an impulsive downside push back towards 1.320 region mark.
