FXstreet.com (Barcelona) - After falls around 140 pips on the better than expected Feb US retail sales data, The GBP/USD has found support at 1.3700.
The GBP/USD has fallen from the 1.3840 to the 1.3698 after the US retail sales data in the early American session. Then, the Cable has been rebounded and it has risen to test the 1.3800 level.
Currently, the GBP/USD is trading around the 1.3775/95 band in a new attempt to be above the 1.3800 level. On the upside, Sterling should return above 1.3822 and then 1.3923 intra-day high to confirm a bottom an above there, resistance line at 1.4040 would be exposed.
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.