GBPUSD is trading around 1.3647 challenging the key upward sloping support trend line coming from the 1.3172 low. Technically trend remains bullish as price is still making higher highs and higher lows. However as we mentioned last week, there are signs showing that the upside is limited and a pull back is imminent.
Red line – support trend line
GBPUSD is still above the red support trend line. Last week we noted that a bearish Daily candlestick formation was an important warning for bulls. Price starts the week under pressure and failure to hold above the red support trend line, would be a new bearish sign. Resistance is at 1.3747 and at 1.3690. Support is where we are currently trading, around 1.3646 and next support level is found at 1.3530. I believe we have seen the highs and we should start rolling over the next few sessions.
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