GBPUSD FORMING POTENTIAL HEAD AND SHOULDERS

The British pound continues to trade towards the 1.3100 level against the US Dollar, after being sold aggressively from the 1.3170 region on Tuesday. The GBPUSD pair looks to be forming a bearish head and shoulder pattern, with a downside projection of around one-hundred and thirty pips. Sellers will target the head and shoulders neckline around the 1.3070 level, while buyers need to push price above the 1.3200 level to negate the bearish pattern.

The GBPUSD pair is strongly bearish while trading below the 1.3080 level, key support is now found at the 1.3050 and 1.3030 levels.

If the GBPUSD pair trades above the 1.3170 level, buyers may be encouraged to target the 1.3205 and 1.3245 resistance levels.