- GBP/USD briefly recaptures 1.3900 but the further upside appears limited.
- The cable rebounds as the US dollar drops along with Treasury yields.
The GBP/USD pair maintained its bid tone through the mid-European session, albeit has retreated around 30 pips from daily swing highs near the 1.3900 mark.
The pair gained some positive traction on Tuesday and finally broke out of a consolidative trading range and the momentum pushed the GBP/USD pair further away from one-month lows touched on Friday.
Even from a technical perspective, the GBP/USD is still trading above its primary bullish trend line. The pair's inability to capitalize on the move and failure near the 1.3900 mark favours bearish traders. Critical resistance awaits at 1.400 round figure mark and acceptance above it will open the path to test 2021 high at 1.4222 .
On the flip side , any subsequent weakness below mid-1.3800s round figure mark and a clear break below the trend-line support will add credence to the negative outlook and pave the way for an extension lower of the recent corrective slide.
