The British pound has surged to the upside against the US dollar, as the greenback came under heavy selling pressure on Monday. Lower time frame analysis shows that a bearish head and shoulders pattern has been invalidated, following a move above the 1.3910 level. The size of the invalidated head and shoulders pattern is indicating that a rally towards the 1.4200 level could take hold.
The GBPUSD pair is only bullish while trading above the 1.3850 level, key resistance is found at the 1.4100 and the 1.4200 levels.
If the GBPUSD pair trades below 1.3850, sellers may test the 1.3810 and 1.3780 support levels.
