• GBP/USD turned bullish after testing support near 1.3400.
• Bearish trend line has formed resistance near 1.3610.

The British Pound, US Dollar pair corrected higher after testing support near 1.3400. As the GBP/USD pair climbed higher, it broke resistance near 1.3500.

GBP/USD 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the pair dropped to a low of 1.3411 before starting a fresh climb. The quote has since broken above the 23.6% Fibonacci retracement level of the downward move from the swing high of 1.3913 to the swing low of 1.3411. It is currently testing the bearish trend line with resistance near 1.3610. 

For the quote to continue to push higher, it will first need to break above this trend line. Next will be the 1.3660 resistance level, which is near the 50% Fibonacci retracement level (of the 1.3913 high to the 1.3411 low). There will be further resistance near 1.3700 level, and both the 100-MA (red) and 200-MA (blue). A break above 1.3700 could see momentum take the quote back towards the recent high of 1.3900 from September 14th.

In contrast, if the quote fails to break above the bearish trend line, the first support level it will test is near 1.3570. A break below here could take the quote back towards the 1.3520 level. If bearish momentum builds can break each of these support levels, the quote could drop back towards the recent low of 1.3420 from September 29th.