GBP/USD Price Analysis: Inverse Head-And-Shoulders underway on 4-hour chart
GBP/USD takes the bids near 1.2490, up 0.05% on a day, during Monday’s Asian session. In doing so, the Cable extends Friday’s bounce off 200-bar SMA to sharpen the inverse Head-And-Shoulder formation on the four-hour chart. However, the neckline of the bullish pattern joins 50% Fibonacci retracement level of June 10-29 fall to add strength to the upside barrier.
Increasing the odds of an upside break is the strong RSI condition and the pair’s sustained trading beyond 200-bar SMA. As a result, the bulls are waiting for a clear break above 1.2535 to escalate the recent recovery moves. In doing so, the June 16 top near 1.2690 could become immediate resistance to watch ahead of the previous month’s high near 1.2815.
GBP/USD Forecast: Mounting Brexit tensions could hit the Pound
The GBP/USD pair has remained unchanged just below the 1.2500 threshold on Friday but closed the week with substantial gains. Hopes mixed with fears by the end of the week, as Britons welcomed the reopening of social activities on Saturday. The news overshadowed concerns related to Brexit talks, which broke up early on Thursday, amid serious disagreements between the two parts. Nevertheless, both parts committed to another round of talks this week in London, and market players expect the EU and the UK to reach an agreement on trade by October.
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