The GBPUSD pair was down marginally on Monday, but so far the FX market has been calm today.
At the time of writing, the cable was trading at around 1.39.That seems like strong support of previous highs and the Pound needs to stay above it for the short-term outlook to remain bullish.
Should sterling decline below 1.39, the short-term trend could change to bearish, targeting the 1.3850 zone, where both the 8 and 21-daily EMAs are converged.
The medium-term support stands at 1.38 and it has been already broken to the downside a couple of times, thus, it looks like bulls are slowly retreating.
Alternatively, if the cable starts rallying again, the resistance will be found at last week’s highs of 1.3970 and afterward at the psychological level of 1.40.