The GBP/USD currency pair maintains its corrective bounce from the weekly low.
A bullish candlestick above the 200-day moving average suggests that prior losses will be consolidated further.
Confirmation of a falling wedge could help the rebound.
GBP/USD is trading near 1.3800 in the Asian session on Thursday, following a turbulent day that included a candlestick that suggested a trend reversal.
The chances of the pair rising gain from advances beyond the 200-day moving average, as well as moves inside the falling wedge bullish chart pattern. Furthermore, the MACD’s bearish bias is fading, giving cable buyers reason to be optimistic.
It should be highlighted, however, that the upper line of a three-week-old falling wedge near 1.3875 will initially test the expected rebound, with a breach of which propelling GBP/USD bulls to the psychological magnet of 1.4000.
A five-week-old falling trend line near 1.4035, though, could limit the pair’s upside potential.
Meanwhile, pullbacks may aim for the recent low near 1.3730 before exposing the wedge’s support line near the 1.3700 round figure.
Even if the GBP/USD sellers manage to defy the bullish chart formation by breaking the 1.3700 support, they will need to conquer the 200-DMA level of 1.3668 to continue to dominate.
Recovery is expected in the future./n
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