GBPUSD SPIKE HIGHER CREATES BEARISH PATTERN

The British pound has spiked sharply higher against the US dollar after reports surfaced that German officials have dropped key Brexit demands. The GBPUSD has fallen away from the best levels of Wednesday, with the move higher helping to close the price gap on the weekly open. The recent move higher has also created a bearish head and shoulders pattern on the four-hour time frame.

The GBPUSD pair remains bearish while trading below the 1.2955 level, key support is now found at the 1.2863 and 1.2802 levels.

If the GBPUSD pair moves above the 1.2955 level, buyers are likely to target the 1.2985 and 1.3040 resistance levels.