Strong reports from the US gave USD enough strength to recover from the recent loss. The reports from the UK may give some support to GBP but the main trend will remain bearish.
The support rests at 1.38700 with resistance at 1.40860. The weekly pivot point at 1.39560 is located in between the lines. The EMA of 10 is moving with bearish bias in the long term ascendant channel and it is above the EMA of 100 and the EMA of 200. The Stochastic is showing upward momentum, the RSI is moving below level 50 and the ADX is showing sell signal. The MACD indicator is in negative territory.
The violation of the lower Bollinger band will confirm further decline towards 1.38400; otherwise, GBPUSD will resume its growth towards 1.42300.
