Despite GBP/USD confirming a breakout below the significant rising trendline from the previous year, the British Pound held its ground against the US Dollar in the past week. The 100-day Moving Average remained a crucial support level, preserving the broader upward focus. However, a closer examination of the overall price action reveals the potential formation of a bearish Head & Shoulders pattern on the daily chart below.
For this pattern to potentially materialize, the currency pair must confirm a breakout below the neckline situated around 1.2592. Such a move would also require breaching the 100-day MA, strengthening the bearish technical outlook and potentially retesting lows from March. Conversely, a key obstacle lies at the right shoulder, just below 1.2848.
GBPUSD BUY 1.2730 - 1.2710 🔼🔼
✔️TP1: 1.2750
✔️TP2:1.2770
🚫SL 1.2670
For this pattern to potentially materialize, the currency pair must confirm a breakout below the neckline situated around 1.2592. Such a move would also require breaching the 100-day MA, strengthening the bearish technical outlook and potentially retesting lows from March. Conversely, a key obstacle lies at the right shoulder, just below 1.2848.
GBPUSD BUY 1.2730 - 1.2710 🔼🔼
✔️TP1: 1.2750
✔️TP2:1.2770
🚫SL 1.2670
