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GBPUSD bounce challenges short-term resistance line

Long
FX:GBPUSD   British Pound / U.S. Dollar
Although US traders cheer extended weekend on Monday, UK PM Boris Johnson’s unlock plan details may help GBPUSD to entertain the markets. That said, the quote bounced off mid-April lows the previous day to regain the status above a five-month-old support line. However, the recovery moves recently fade around a downward sloping trend line from June 16. Hence, bulls and bears jostle between the 1.3800 support and 1.3820 resistance ahead of the key announcement. Should Boris remains optimistic over covid conditions in the UK, the pair may easily overcome the nearby hurdle to aim for the early April’s top surrounding 1.3915. However, any further upside will be tested by the 1.4000–4010 area comprising multiple tops marked since March.

On the contrary, a downside break of the 1.3800 level will not hesitate to drag the GBPUSD prices to 1.3670-75 area including lows marked in March and April. It should, however, be noted that the quote’s weakness past 1.3670 could make it vulnerable to retest the yearly low surrounding 1.3450. During the fall, February’s low near 1.3560 may act as an intermediate halt. To sum up, GBPUSD bears seem to have tired of late but bulls need conviction for fresh entry.