GBPUSD has stabilized just above the key 1.40 level and is in a neutral phase in the short term. The strong rebound that took the pair back above 1.40 from 1.3834 suggests that a short-term bottom is in place. For now the risk for further GBPUSD weakness has diminished, as the MACD has risen above zero into bullish territory. Sideways consolidation in a range between 1.4050 and 1.4400 is expected. RSI is still weak so a sustained up-move is not likely.
The overall picture is bearish as the market has been in a downtrend since mid-2015. Resistance lies at 1.4513. A break below 1.40 would open the way for a retest of the February 29 low of 1.3834 and below this we could see a resumption of the downtrend.
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