GBP/USD Price Analysis: Below 1.30, eyes head-and-shoulders support

GBP/USD looks set to test key support at 1.2960.
A close lower would confirm a head-and-shoulders breakdown.

Omkar Godbole FXStreet Contributor

GBP/USD ran into offers on Monday as expected and fell below 1.30, validating the sign of buyer exhaustion on the weekly chart.

The pair now looks set to test the head-and-shoulders neckline support at 1.2960 with the 5- and 10-day averages flashing a bearish crossover and the 14-day relative strength index reporting bearish conditions with a below-50 print.

A close below that level would confirm a breakdown or a bearish reversal and create room for a slide to 1.2582 (Sept. 20 high).

A strong bounce from the neckline support at 1.2960 would weaken the bearish case. That said, the outlook would turn bullish if and when the pair rises above 1.3250, invalidating the lower highs setup (right shoulder) on the daily chart.

At press time, the pair is trading near 1.2990.

Daily chart

Trend: Bearish

Technical levels

GBP/USD

Overview
Today last price	1.2990
Today Daily Change	-0.0005
Today Daily Change %	-0.03
Today daily open	1.2995

Trends
Daily SMA20	1.3073
Daily SMA50	1.3019
Daily SMA100	1.2762
Daily SMA200	1.2691

Levels
Previous Daily High	1.3045
Previous Daily Low	1.2961
Previous Weekly High	1.3213
Previous Weekly Low	1.3013
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.2993
Daily Fibonacci 61.8%	1.3013
Daily Pivot Point S1	1.2956
Daily Pivot Point S2	1.2916
Daily Pivot Point S3	1.2872
Daily Pivot Point R1	1.304
Daily Pivot Point R2	1.3085
Daily Pivot Point R3	1.3124

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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