GBPUSD HEAD AND SHOULDERS PATTERN IN PLAY

The British pound has fallen to a twenty-month trading low against the US dollar after British PM Theresa May cancelled the Meaningful Brexit vote, creating further uncertainty for the UK economy. The GBPUSD pair has broken the neckline of a large head and shoulders pattern and remains heavily bearish while trading below the 1.2657 level. Bearish fundamentals and technicals are aligning, indicating further downside ahead for sterling.

The GBPUSD pair is strongly bearish while trading below the 1.2657 level, key technical support is found at the 1.2500 and 1.2380 levels.

If the GBPUSD pair trades above the 1.2600 level, key resistance is found at the 1.2657 and 1.2690 levels.