Technical analysis
The GBPUSD pair remains technically bullish on the daily time frame and continues to trade above its 200-day and 50-day moving averages.
The GBPUSD pair looks to be targeting towards the 1.4300 level over the medium-term due to the presence of a large inverted head and shoulders pattern.
What the possible outcomes are
In our most likely scenario, the GBPUSD pair will start to find buying interest below the 1.3900 level and then start to rally towards the 1.4130 resistance level at a minimum.
Alternatively, the GBPUSD could decline towards the 1.3800 level one final time and then stage a weaker than expected rally towards the 1.4000 level.
Key levels
Support 1.3870 1.3800
Resistance 1.4000 1.4130
