GBP/USD technical analysis: Teasing inverse head-and-shoulders breakout
|- GBP/USD has created an inverse head-and-shoulders pattern on the 4-hour chart.
- A convincing move above 1.2165 would confirm a bearish-to-bullish trend change.
GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time.
An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.
That seems to be the case here. The pair fell from 1.3381 to 1.2014 in the five months to Aug. 12 before creating the inverse head-and-shoulders pattern.
A convincing break above 1.2165 would confirm a bearish-to-bullish trend change and open the doors to 1.2316 (target as per the measured move method).
4-hour chart
Trend: Bullish above 1.2165
Pivot points
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