The British Pound may extend lower in the coming trading sessions. That is because GBP/USD confirmed a breakout under a bearish Head & Shoulders chart formation over the past few days. Now, the next obstacle to the downside is the 200-day Moving Average, which is immediate support. This has been maintaining the dominant upside bias.
Breaking under could open the door to a broader bearish reversal towards the May low of 1.2308. From there, confirming lower exposes the March low of 1.1804. Otherwise, a bounce off the moving average places the focus on the neckline around 1.2592. Clearing higher would place the focus back to the upside.
Breaking under could open the door to a broader bearish reversal towards the May low of 1.2308. From there, confirming lower exposes the March low of 1.1804. Otherwise, a bounce off the moving average places the focus on the neckline around 1.2592. Clearing higher would place the focus back to the upside.
