GBPUSD Watch 1.3840
The British pound appears increasingly weak against the greenback as the upside breakout in the US dollar index gather steam. A bearish head and shoulders pattern with a four-hundred point downside projection in action while the GBPUSD pair trades below the 1.3840. A short squeezes back towards the 1.3900 level this week may be used as a major selling opportunity, in expectation of further downside.
The GBPUSD pair is only bullish while trading above the 1.3840 level, key resistance is found at the 1.3880 and the 1.3910 levels.
If the GBPUSD pair trades below 1.3840, sellers may test the 1.3710 and 1.3660 support levels.