GBP/USD fails to rise above 1.35

The GBP/USD pair is declining at the time of writing after failing to stabilize above the 1.3500 psychological level. After its amazing rally, a temporary decline is natural. The pair could come back to test and retest the immediate downside obstacles before resuming its swing higher.

The price is falling only because the US dollar Index has managed to rebound. Fundamentally, the UK Nationwide HPI registered a 1.0% growth versus 0.5% expected and compared to 0.9% growth in the previous reporting period.

The current drop could be only a temporary one. besides, its trajectory depends on initial jobless claims data and by the Chicago PMI.

GBP/USD failed to stabilize above the 1.35 and above the weekly R1 (1.3492). A temporary decline is in cards. 1.3437 stands as static support as long as it stays above it. The pair could still resume its leg higher.

I have told you in the previous analysis that GBP/USD could extend its upwards movement if it comes back above the 1.3437 and above the 150% Fibonacci line. A minor decline could help the buyers to catch a new bullish momentum.

The minor retreat could bring new long opportunities. This could be only a temporary one. A minor consolidation above the 1.3461 -1.3437 could attract more buyers and more bullish energy.

Also, coming back and stabilizing above the weekly R1 (1.3492) could confirm further growth ahead. The first warning line (WL1) of the descending pitchfork stands as a potential upside target.