FX.co ★ Head and Shoulders pattern activation in GBPUSD for August 29th, 2023.

Red line- neckline support

Green lines- head and shoulders pattern

Blue line- expected downward move

GBPUSD is trading around 1.2587. GBPUSD recently broke below the red neckline support at 1.2610 activating the bearish pattern that got formed over the last three months. Technically price is in a bearish trend making lower lows and lower highs. Holding below 1.2610 will be a bearish sign. For bulls to cancel the bearish scenario, they will have to push price above the highs of the right hand shoulder at 1.2813. We remain bearish as long as price is below this level. Downside target according to the head and shoulders pattern is at 1.2050. First near term target is at 1.2450.