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GBP/USD - Rounded Bottom Versus Falling Resistance

Cable has been rounding out a bottom this week as shown in the 4H chart.

(GBP/USD 4H chart)

GBP/USD is finding support just above a rising trendline that is coming up from the Nov. 2013 low.

It also tagged the 61.8% retracement level. The GBP/USD has the set up of a market that might revive its prevailing bullish mode after consolidating for a little over a month.

Bullish continuation:
The next clue for a bullish continuation would be a break above the 1.6568 pivot and a falling channel resistance. Then the ability to make higher low should indicate revival of the uptrend.

In the bullish scenario, the RSI should also tag 70, which will reflect bullish momentum. Then if it can hold above 40, we are likely going to have some bullish development in the following few weeks.