GBP/USD Technicals: Difficulties to break 1.26
The GBP/USD pair trades near an important resistance at the 1.26 level, where bulls seem to have difficulties to push above. The level aligns with a strong horizontal resistance that dates back to April 14th.
The pound also reversed today's losses, forming a bearish candlestick pattern that could push the price lower in the coming period. Whether the pair will break above 1.26 mostly depends on the outcome of Brexit talks tomorrow.
I see the possibility of a retest of the lower 1.25xx levels.
The 1-hour chart shows a double top pattern, which could send the pair lower ahead of the Brexit headlines tomorrow. Any positive news, and we could see further upside movement as market participants cover their shorts (there's a currently a heavy bearish positioning on the GBP).
The pound also reversed today's losses, forming a bearish candlestick pattern that could push the price lower in the coming period. Whether the pair will break above 1.26 mostly depends on the outcome of Brexit talks tomorrow.
I see the possibility of a retest of the lower 1.25xx levels.
The 1-hour chart shows a double top pattern, which could send the pair lower ahead of the Brexit headlines tomorrow. Any positive news, and we could see further upside movement as market participants cover their shorts (there's a currently a heavy bearish positioning on the GBP).
