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GBP/USD

GBP/USD

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.

Failure to break below 1.5960, and a rally back above 1.6050 invalidates the head and shoulder pattern, and the market is range-bound, with short-term bullish outlook toward the 1.6150 high.

GBP/USD

Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources. 

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