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GBP/USD technical analysis: The pair looks like it may retest the longer-term trendline

  • GBP/USD has held up better than the EUR against the USD this week.
  • There is a trendline on the weekly chart that it may come back to test.

GBP/USD has taken a fall like most others against the greenback this week.

The dollar has been moving higher against most of its counterparts after positive news on the trade war front.

The latest is that although progress has been made, Trump himself has not confirmed that he will pullback the previous tariffs in order to get a deal.

This goes against reports earlier in the week which suggested both sides will pull back on their tariffs against one another.

Looking at the chart now and you can see the current weekly candle is very bearish.

The fact that it has broken the low point of the two previous candles indicates that a retest of the trendline could occur. 

The low of 1.2789 was the consolidation low and today the price has just printed below the support level.

GBP/USD Weekly Chart

GBP/USD analysis

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