The GBP/USD spiked due to USD profit taking after chief Yellen’s comments on Friday. The move has formed a technical bullish SHS
The GBP/USD spiked due to USD profit taking after chief Yellen’s comments on Friday. The move has formed a technical bullish SHS (inverted head and shoulders) pattern but the breakout might be restricted by a POC zone at the top of the right shoulder. POC (H3, EMA89, 38.2, ATR pivot) 1 1.2300-1.2315 could reject the price towards 1.2245 whereas the breakout of 1.2245 would tank the price further towards 1.2200. In the case that bullish SHS pattern breaks to the upside, the price could retrace towards 1.2360-80 POC2 (ATR top, bearish order block, 61.8, H5) and reject from there. Targets are the same 1.2245 and 1.2200.
GBP/USD Chart
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets
