GBPUSD (1.2876): The British pound was seen trading flat near the support level at 1.2847 for the past three days. This price level was previously tested in early July. The rebound off this level is therefore quite likely as GBPUSD could be seen reversing the losses from the past few weeks. Price action in GBPUSD suggests that there is a strong possibility for a rebound back to 1.3000 – 1.3033 level of resistance in the near term. This could also form the potential head and shoulders pattern as a result. A reversal needs to be confirmed at 1.3000 – 1.3033 level however. This would then set the tone for a bearish decline in GBPUSD that could be seen testing the lower support at 1.2628 support, marking the measured move from the head and shoulders pattern. A break out above the previous highs at 1.3200 could however invalidate this downside bias.
