GBPUSD (1.3034): The British pound posted strong gains yesterday as the price reached 1.3033 resistance. A reversal off this level is essential for the potential head and shoulders pattern to be validated. Therefore a daily close below 1.3033 could signal an initial move to the downside towards the neckline support at 1.2847 followed by a move to 1.2628 which completes the measured move of the head and shoulders pattern to the downside. Watch for any potential reversal candlestick pattern on the 4- hour chart near the resistance level. A break out above 1.3051 could, however, signal further gains towards 1.3116.
