GBP/USD Giant Head and Shoulders looming on 4H charts
The GBP/USD recent data has been mixed. While retails sales data came better than expected, core CPI was worse than expected. I think the GBP/USD may be ranging at this point as sell the rallies scenario is still dominating the pair.
Technically, we can see a giant Head and Shoulders pattern on 4h time frame and clear POC zone signals sellers could appear. POC (H3, WPP, neckline, descending trend line, EMA89, 50.0) 1.2395-1.2415 could reject the price if we see the retracement to the upside towards 1.2300. However if we see bearish continuation without any retracement then pay attention to 1.2300. Strong H1 momentum or 4h close below 1.2300 should target 1.2255-33 zone. Only above 1.2500 ( Xcross ™) bulls might region a temporary control.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets