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GBP/USD dropped after reaching a static resistance level. Still, the decline could be only a temporary one as the pair is located above major dynamic support. The DXY remains under selling pressure, so a further decline should weaken the greenback.
The price has declined a little after Friday’s rally. Technically, maybe it was a natural reaction. You should keep in mind that the outlook is still bullish, so we could still search for long opportunities.
GBP/USD H4 Chart Technical Analysis!
GBP/USD has come back down to retest the lower median line (lml) of the ascending pitchfork which represents strong dynamic support. The price has closed far above it signaling strong buyers around this line.
The pair is still trapped within an extended sideways movement. Its last false breakdown below 1.4099 and the bullish engulfing printed on the confluence area could announce an upside continuation.
Staying above the lower median line (lml) could bring a new bullish momentum towards the former highs.
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