Forex: GBP/USD remains below H&S neckline

FXstreet.com (California) - GBP/USD is in bullish correction mode, continuing its recovery from 5-month lows recorded on the 27th day of June.

Technically speaking, “GBP/USD remains below the neckline of a head-and-shoulders pattern, which targets the 1.5500 area. The short-term outlook is sideways to slightly bullish. The medium-term outlook is slightly bearish and my model is short,” comments Cornelius Luca of CME Group.

At the time of writing, GBP/USD is showing strength in Asia, quoted in the 1.6070 price zone 10 pips above its opening price.

To the upside, Mr. Luca identifies immediate resistance is at 1.6085, followed by 1.6100 and 1.6150. To the downside, the pair could encounter support at the 200-day EMA, or 1.5968 and below there, 1.5894.

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