GBPUSD Correction May Be Over

The British pound has suffered a strong rejection from the 1.3920 level against the US dollar currency, raising fear that the recent upside corrective move is over. Repeated failure under the GBPUSD 200-period moving average on the four-hour time frame should cement the bearish view towards the pair. GBPUSD bears now need to move the price under the 1.3850 support level to heighten technical selling in the short-term horizon.

The GBPUSD pair is only bullish while trading above the 1.3850 level, key resistance is found at the 1.3890 and the 1.3930 levels.

If the GBPUSD pair trades below 1.3850, sellers may test the 1.3810 and 1.3780 support levels.