GBPUSD bearish pattern forming
The British pound is increasingly volatile against the US dollar currency, following yesterday’s major reversal from the 1.3290 area. Technical analysis shows that a large bearish head and shoulders pattern has now formed across the lower time frame. Looking more closely at the pattern, a break under the 1.3160 level is required to activate the pattern that holds a 140 pip downside target.
The GBPUSD pair is only bullish while trading above the 1.3160 level, key resistance is found at the 1.3290 and 1.3320 levels.
The GBPUSD pair is only bearish while trading below the 1.3160 level, key support is found at the 1.3110 and 1.3060 levels.