Quick Look: GBP/USD daily close below 1.4266 wuld be bearish

Cable dropped today as expected. The pair was a sell on rise trade as mentioned here Quick Look GBP/USD – Sell on rise unless breaks above 1.4436

Daily chart

gbpusd

Having failed to take out black trend line, prices have drifted lower to 1.43 and appear on track to test support 1.4266 (falling trend line – blue), where a violation on daily closing basis wuld signal correction from 1.3835 has ended.

Choppy trading wuld be seen later and if penetrates 1.41 on downside would signal spot is on track to re-test 1.3835.

But, bears would need to be cautious if the spot flirts with falling trend line – blue and rebounds, in which case strling could tgt resistance at 1.4350, which if violated wud signal continuation of uptrend that began from 1.3835 and thus may yield 1.45 levels.

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