Cable Retests Support After Breakout

In today’s technical analysis, let’s take a look at GBP/USD, also known as cable.

Last week brought an important technical development. The price managed to break a key resistance zone around 1.348, marked with a yellow area. This level had been holding since the end of February, so the breakout is significant.

Before the breakout, the price formed a triple bottom pattern, marked with orange arrows. That structure often signals accumulation and builds a base for a move higher, which is exactly what followed.

Now we are seeing a classic follow-up move.

After the breakout, the price dropped sharply at the end of the week and is currently testing that same yellow area, but this time as support. This is a typical technical behavior where old resistance turns into new support.

So how do we read this?

As long as the price holds above this zone, the breakout remains valid and the sentiment stays positive. That keeps the buy scenario in play.

On the other hand, if the price breaks back below this support, it would invalidate the breakout and trigger a signal to go short.

This makes the current level a key decision point for the week.