The GBPUSD pair has staged a rebound against the US dollar currency after the pair failed to break beneath the technically important 1.3130 level. Lower time frame analysis highlights that an extremely large head and shoulders pattern is starting to take shape. Traders should be aware that a 500 point decline in the GBPUSD pair could take place if the bearish pattern is activated.
The GBPUSD pair is only bullish while trading above the 1.3300 level, key resistance is found at the 1.3410 and the 1.3470 levels.
If the GBPUSD pair trades below the 1.3300, sellers may test the 1.3130 and 1.2770 support levels.
