The British Pound continues to be overshadowed by a brewing bearish Head & Shoulders chart formation against the US Dollar. On the daily chart below, GBP/USD can be seen struggling to clear the neckline around 1.2592. Furthermore, prices are struggling to find follow-through after breaking under the 100-day Moving Average (MA).
Confirming a drop through 1.2592 opens the door to extending lower, placing Sterling at risk. That exposes the May low of 1.2308 as key support below. Otherwise, turning higher places the focus on the left shoulder inflection point of 1.2848. Extending gains beyond that may open the door to revisiting the July high of 1.3299.
Confirming a drop through 1.2592 opens the door to extending lower, placing Sterling at risk. That exposes the May low of 1.2308 as key support below. Otherwise, turning higher places the focus on the left shoulder inflection point of 1.2848. Extending gains beyond that may open the door to revisiting the July high of 1.3299.
