GBP/USD potential new drop

GBP/USD temporary growth

The GBP/USD pair has managed to grow after failing to reach the 1.3400 psychological level. The pair could drop again anytime as long as it stays below the immediate downtrend line.

The current rebound could be only a temporary one. The former low of 1.3591 which represented a support level is seen as an upside obstacle. As long as it's traded below it, the GBP/USD could develop a new downside movement towards 1.3423 immediate low.

GBP/USD trading conclusion

The current rebound was natural after the most recent massive drop. Also, the GBP/USD pair was somehow expected to come back to test and retest the 1.3591 former low before resuming its downward movement.

Only jumping and stabilizing above the downtrend line could signal that the downside movement is over.