GBP/USD Could Drop To 1.3850 – 1.3800

GBP/USD once again could not break out above the resistance zone around 1.4345 – 1.4376, which can be seen clearly both on the W1 and monthly time frames, and renewed its depreciation.

The possible scenarios considering this development are:

A third test of the resistance is also possible, leading to a breakout and a rally to 1.4500-1.4550.
There may not be a third test and the pair will continue depreciating to the support trend line (in red) around 1.3850 – 1.3800.

In case there is a breakout below the trend line we could expect a depreciation to 1.3200 – 1.3150.

In my opinion, the drop to the trend line and a breakout following that drop is the more probable scenario. That is a long term scenario that can be used to make a significant profit.