GBPUSD retesting broken downtrend line

18/03/2021

The GBPUSD pair fell half a percent on Thursday as the BoE sounded dovish, and rising US yields spurred the greenback's demand.

At the last check, the so-called cable was trading at around 1.39.

The strong support is now being tested as bears pushed the Pound back to the broken, bearish trend line. If the pair drops significantly below the trend line, the short-term outlook could change to bearish again. 

Another target for bears might be in the 1.3850 region, where Wednesday's lows are located.

Alternatively, if the cable starts rallying, it needs to clear the 1.3930 resistance. 

Moreover, it looks like the 1.40 threshold won't be broken easily as sterling has already failed there a couple of times in March.  The overall trend seems choppy, but if US yields continue to rise vertically, the GBPUSD pair might remain pressured. 
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