The British Pound started a downside correction from well above 1.4100 against the US Dollar. The GBP/USD pair even broke the 1.4000 support zone to move into a short-term bearish zone.
The pair traded as low as 1.3858 and it is currently correcting higher. There was a break above a connecting bearish trend line at 1.3890 on the hourly chart. The pair even recovered above 1.3920 and the 50 hourly simple moving average.
On the upside, an initial resistance is near the 1.4000 level. A clear break above the 1.4000 level could open the doors for a steady increase towards the 1.4050 and 1.4060 levels.
Conversely, there is a risk of a fresh decline below the 1.3920 support and the 50 hourly simple moving average. In the stated case, the pair could revisit the 1.3858 low on FXOpen.
