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GBP/USD Testing Resistance Again

GBP/USD has been in consolidation. Last time I looked at GBP/USD, I noted that there is a bearish bias within this consolidation. But because there is no breakout to the downside yet, we should only consider shorting near the consolidation resistance.

GBP/USD 4H Chart 4/19

(click to enlarge)

As we can see in the 4H chart, GBP/USD has been rallying in the last couple of weeks, up from almost hitting 1.40 to now, approaching 1.44. I did write in the last post that 1.44 could be an interesting are to monitor for a sell. Even around 1.4360, GBP/USD is being challenged by a falling speedline that shapes the current consolidation. 

From here, a viable target is the 1.4240 pivot. A more aggressive target would be 1.4050. Both of these would be within the context of consolidation. But if price is able to reach 1.4050, it is saying something, and we should plan for the scenario of a break lower, which not only has 1.40 in sight, but also the 1.3835 low on the year in sight.