# GBP/USD Trend Line Retest (February 10, 2014)

Source: https://www.tradersway.com/resources/market-info/gbp-usd-trend-line-retest-february-10-2014/
Language: en
Updated: 2014-02-10

GBP/USD just broke below the long-term rising trend line on its 4-hour chart recently but appears ready to make a pullback before resuming its selloff.



The pair has bounced off support at the 1.6300 major psychological level earlier in the month and has pulled up to the 38.2% Fibonacci retracement level on the latest swing high and low. Stochastic is already indicating overbought conditions, which means that the downtrend might resume soon.



![GBP/USD Trend Line Retest (February 10, 2014)]



Shorting at the test of the trend line around the 1.6450 minor psychological resistance or at market around the 38.2% Fib level with a stop back above the trend line could yield a high return on risk if one aims for new lows. Moving the stop to entry once price tests the former lows around 1.6300 is a good way to reduce risk.



*By Kate Curtis from Trader’s Way*