Technical analysis
The GBPUSD pair looks to be forming a large inverted head and shoulders pattern, with the pattern being confirmed if the price reaches the 1.4000 resistance level.
The four-hour time frame shows that significant amounts of bullish MACD price divergence is being reversed. The MACD price divergence extends all the way up towards the 1.4000 level.
What the possible outcomes are
In our most likely scenario, the GBPUSD pair advances towards the 1.4000 resistance and forms a large inverted head and shoulders pattern with significant upside potential.
Alternatively, the GBPUSD pair will rally all the way through to the 1.4130 resistance level as buying momentum continues to take hold and the 1.4000 resistance level fails to contain the advance.
Key levels
Support 1.3900 1.3860
Resistance 1.4000 1.4130
