The British pound faces a pivotal trading week against the US dollar, with the pair desperately needing to bounce higher to avoid a drop below the 1.2000 level. Technical analysis shows that the 1.2075 level must hold to stop the GBPUSD slipping towards the 1.2000 level. Traders should note that an extremely large bullish reversal pattern will form this week if buyers can rally the GBPUSD pair towards the 1.2500 level.
The GBPUSD pair is only bullish while trading above the 1.2200 level, key resistance is found at the 1.2300 and 1.2420 levels.
The GBPUSD pair is only bearish while trading below the 1.2200 level, key support is found at the 1.2160 and 1.2070 levels.