The British pound is still treading water against the US dollar as the pair fails to hold above the 1.4200 level after last Friday’s strong price pullback. A potential bear trap could be in the making as a large inverted head and shoulders pattern is still pointing to a coming rally towards the 1.4380 area. Overall, buying into price dips is still the best strategy while the GBPUSD pair holds above the 1.4000 level.
The GBPUSD pair is only bullish while trading above the 1.4160 level, key resistance is found at the 1.4200 and the 1.4240 levels.
If the GBPUSD pair trades below the 1.4160, sellers may test the 1.4100 and 1.4000 support levels.
