FXstreet.com (Barcelona) - After it rises more than 185 pips in the American session, the GBP/USD has broken the downtrend line support at 1.3870 and it is climbing to the 1.3900 with strong pace.
In the early American session, the GBP/USD fell around 115 pips after the US retail sales, but after it found support at 1.3700, the pair begun to recover its initial losses. The Cable has risen around 185 pips from the 1.3700 to the 1.3885 level, breaking the 1.3870 downtrend line.
Currently, the pair is trading around the 1.3875/85 and it is going toward the 1.3900 level. If the uptrend is confirmed, the pair will launch a new attack to the 1.3920 resistance level, intra-day maximum.
On the downside, if the GBP/USD advances towards 1.3700 again, the pair could drop towards a new six week low in case of dropping below yesterday's low at 1.3654, below here, the Pound could drop to 1.3600, and then long time support line at 1.3500.
According to Valeria Bednarik, FXstreet.com Collaborator, Cable need to be below the 1.3720 level to trigger more bearish momentum: Still bearish in the hourly, the pair needs to break the floor around 1.3721 to trigger more momentum. Volume is normal, while momentum indicator seems divergent after this past hour violent upside down volatility. We need a new candle opening to confirm further movements.