GBP/USD’s Short Term Downtrend Line
The pair is bounded under the minor resistance of 1.3929 and also under short term downtrend line. Trading is still neutral. Strong breach of 1.3929 will imply trend reversal. Sustained retreat from 1.4345 should end at 1.3711 and if that happens, trading will turn up on the upside to 1.4144 resistance. Following pivot points include: (S1) 1.3858; (P) 1.3887; (R1) 1.3935.
Breach of 1.3711 will extend the fall from 1.4345 to surpass the resistance turned support of 1.3651. Firm support from 38.2% retracement of 1.1946 to 1.4345 at 1.3429 will restrain downside and lead to recoil.
Medium term forecast stays bullish if 1.3038 support stands. Increase from 1.1946 is a correction for the long term downtrend from the maximum of 2.1161. Another rally should align 38.2% retracement of 2.1161 to 1.1946 at 1.5466. The pair can’t surpass 55 month EMA. Breach of 1.3038 support will indicate ending of the lift from 1.1946, which will make prognosis bearish till repeat test of this level.