GBP/USD update - Falling trend line has been a major hurdle
On the left hand side, we have weekly chart and on the right hand side we have daily chart.
On the weekly chart, we can see any break above the falling trend line level has been met with offers. Each time the pair failed, we have seen at least 500-600 pip fall before another attempt was made. Moreover, on a weekly closing basis, the trend line has never been breached. Hence, a day end closing above the trend line level needs to be treated with caution.
Bullish move would gather steam once the trend line is breached on weekly closing basis. Also note that rejection at the trend line could yield another 500-600 pip fall. This means a drop to 1.41-1.40 levels from the current trend line resistance of 1.46 levels
On the weekly chart, we can see any break above the falling trend line level has been met with offers. Each time the pair failed, we have seen at least 500-600 pip fall before another attempt was made. Moreover, on a weekly closing basis, the trend line has never been breached. Hence, a day end closing above the trend line level needs to be treated with caution.
Bullish move would gather steam once the trend line is breached on weekly closing basis. Also note that rejection at the trend line could yield another 500-600 pip fall. This means a drop to 1.41-1.40 levels from the current trend line resistance of 1.46 levels
