Black line- resistance trend line
Red line- support trend line
Green lines- Fibonacci extension targets
GBPUSD is trading around 1.2595. As we explained in a previous analysis, GBPUSD has formed a head and shoulders pattern. Price is challenging the neckline support once again, after forming another lower high around 1.2745. A break below 1.26-1.2590 would be a new sign of weakness and will most probably push price even lower towards the 161.8% Fibonacci retracement level 1.2460. As long as price holds below 1.2725 we remain bearish.