The GBP/USD failed to break back above the week-high near 1.6050. Instead, a bout of risk-off trading in the US session gives us an engulfing candle in the 1H chart. The market in the 1H chart is range-bound, and we are at the lower half of the range.with price action possibly heading back to 1.59. A break below 1.5960 increases the chance of this near-term scenario. If then the 1.59-1.5880 level breaks, we have a head and shoulder scenario in the 4H chart. With a break below the topping pattern, the market opens a test of 1.5690-1.5720 support cluster.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.0