GBP/USD holds on to modest gains above 1.3900, pretty much flat for the day. Mildly stronger US dollar having a limited impact on the pair.From a technical perspective, repeated failures near the key 1.4000 psychological mark constitute the formation of a bearish double-top pattern on short-term charts. However, the lack of any strong follow-through warrants some caution for aggressive bearish traders.
Hence, any decline is likely to find decent support near the 1.3890-85 confluence region, comprising of over one-week-old ascending trend-line and the 23.6% Fibonacci level of the 1.4243-1.3779 corrective slide. A convincing break below will be seen as a fresh trigger for bearish traders and turn the pair vulnerable to accelerate the slide back towards testing monthly lows, around the 1.3780 region.
On the flip side, the 38.2% Fibo. level, around the 1.3955-60 region now seems to act as immediate strong resistance. A sustained strength beyond might assist bulls to make a fresh attempt towards conquering the 1.4000 mark. The latter coincides with the 50% Fibo. level, which if cleared decisively has the potential to push the pair further towards the 1.4070 region (61.8% Fibo.) en-route the 1.4100 mark.
