GBP/USD: Selling into the rebound

The setup is similar in EUR/USD & GBP/USD - because of the dollar in both major pairs!

The GBP price is testing the broken uptrend line on the weekly- and could break above it.



On the daily chart, a downtrend line has already broken and so has critical resistance at 1.25, suggesting a break above the weekly uptrend line



Should the breakout follow-through it faces resistance at 1.28 from the December high and 30 week (150 day) moving average.

However, should the breakout fail - it sets up a likely continuation of the longer term downtrend.