GBP/USD is still trapped below a downtrend line, so the pressure remains high as long as it stays under this dynamic resistance, an upside obstacle. Staying below it may signal a deeper decline.
Only a jump above it and above the high of 1.3839 may signal potential growth. The current drop could be only a temporary one. It has failed to stabilize above 1.3800 psychological level in the last attempts signaling that the downside movement is over.
Trading Conclusion
A drop below 1.3800 could signal a further decline towards 1.3750 or even lower towards the psychological level of 1.3700.
On the other hand, a jump above the downtrend line and through the psychological level of 1.3900 is likely to announce potential growth in the upcoming period.
