FX.co ★ Signs of weakness in GBPUSD.

For the last couple of weeks GBPUSD was riding an upward sloping trend line making higher highs and higher lows. Yesterday price broke below the support trend line providing us with the first bearish signal after some time.

Blue line- support trend line.

GBPUSD has reached very close to the resistance trend line coming from 1.36. The break below the support trend line is a sign that traders should not ignore. It is too early to tell if a new downward move is starting or just a pull back to retrace part of the upward move from 1.2154. What is certain is that as long as price is below the red trend line, we should expect GBPUSD to remain vulnerable to selling pressures.