GBPUSD BEARISH HEAD AND SHOULDERS PATTERN IN FOCUS
The British pound earlier fell to a fresh 2018 trading low against the US dollar, hitting 1.2657, following another day of political turmoil for the current UK government. The head and shoulders pattern across the lower time frame is now back focus, with the bearish pattern holding a downside projection greater than five hundred basis points. Buyers need to move price above the 1.2840 level to negate immediate selling pressures on the GBPUSD pair.
The GBPUSD pair is strongly bearish while trading below the 1.2695 level, key technical support is found at the 1.2657 and 1.2550 levels.
If the GBPUSD pair trades above the 1.2770 level, key resistance is found at the 1.2800 and 1.2840 levels.