The British pound has pulled back from the 1.4000 level against the US dollar currency ahead of today’s all important Bank of England policy decision. A large inverted head and shoulders pattern has formed and is activated while the GBPUSD pair trades above the 1.3940 level. If the GBPUSD pair dips under neckline support traders may look to buy the pair around the 1.3870 level in expectation of further gains.
The GBPUSD pair is only bullish while trading above the 1.3940 level, key resistance is found at the 1.4000 and the 1.4100 levels.
If the GBPUSD pair trades below the 1.3940, sellers may test the 1.3870 and 1.3840 support levels.
