GBP/USD fails to build on Friday’s gains and is trapped inside a bullish chart shape.
The purchasers are being teased by a momentum drop, and more losses are expected.
Following Friday’s recovery from mid-April lows, GBP/USD buyers are flirting with a short-term critical resistance line. On a daily basis, the cable pair seesaws around 1.3830, forming a falling wedge bullish chart pattern.
Given the sluggish Momentum line and the pair’s failure to prolong the bounce from a multi-day low, the quote could draw back to the 1.3800 round figure.
Any further decline, however, would be tested by the support line of the indicated bullish formation, which is about 1.3730. June’s low of 1.3785 may serve as a temporary pause in the descent.
It’s worth mentioning that the pair’s losses beyond 1.3730 will be hampered by lows around 1.3670 set in March and April.
A break above the 1.3845 resistance line, on the other hand, will confirm the bullish chart pattern, with an initial increase aiming for the 1.4000 level in late June.
Early June lows near 1.4080, a break of which might propel the quote to the 1.4240-50 level encompassing the yearly highs, also the highest since April 2018, will cast doubt on GBP/USD gains beyond the 1.4000 round figure.
Pullback is projected as a trend./n
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