Is GBP/USD Momentum on the Wane?

After positive signs were seen on the GBP/USD chart earlier this year a recent drift back threatens to develop into something more lasting.

• WEEKLY CHART -CONTINUATION The previous break through falling resistance was bullish –but after the 50% recovery level was neared the market has slipped. Support from the old falling return line just below 1.6000 is now being tested.
• DAILY CHART: The recent break of rising support was an initial sign of momentum loss. However, lower supports are more crucial, including the 1.5934 28-Mar low and, in particular, the channel base projection around 1.5800. This latter combines with a 38.2% pullback level nearby at 1.5785 –a violation of this would signal a more prolonged correction phase was underway.

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