GBP/USD Pair Started a Decent Recovery and Now Trading Above 1.3850

Technical analysis of Forex market

The British Pound corrected lower and tested the 1.3800 support zone against the US Dollar. The GBP/USD pair started a decent recovery and it is now trading nicely above 1.3850.

There was a break above the 1.3880 resistance zone and the 50 hourly simple moving average. It is now attempting an upside break above the 1.3910 level and a connecting bearish trend line on the hourly chart.

The main resistance is near the 1.3935 and 1.3940 levels. A clear break above the 1.3940 level could open the doors for a steady increase towards 1.4000 on FXOpen.

On the downside, there is a major bullish trend line forming with support near 1.3865 on the same chart. If there is a downside break below the trend line, the pair could decline again towards the 1.3800 support in the near term.