Nathan BatchelorThe British pound is moving to the upside against the US dollar as sterling bulls attempt to shake-off fears about the health of the United Kingdom.
GBP to USD analysis shows that the pair needs to hold price above the 1.25000 level to avoid a rejection back towards the 1.2000 level.
GBP/USD medium-term price trend
The British pound is attempting to find fresh buying interest above the 1.2400 level against the US dollar, despite the bearish fundamental factors facing sterling.
GBP/USD technical analysis over the medium-term shows that the pair is only likely to stay under pressure while price trades below the 1.2500 level.
The GBP/USD pair’s monthly pivot point is found at the 1.2330 level and remains a key technical region to watch this week.
Traders pay close attention to pivot points as they often mark technical and sentiment shifts for traders.
Key medium-term support below the 1.2330 level is found at the 1.2160,1.2000 and 1.1850 levels.
To the upside, the 1.2520, 1.2650, and 1.2800 levels offer key medium-term resistance.
GBP/USD short-term price trend
GBP/USD technical analysis shows that the pair has a bullish short-term trading bias while price trades above the 1.2300 level.
The lower time frames show that a bearish head and shoulders pattern is forming, following the recent major reversal from the1.2650 level.
According to the size of the bearish reversal pattern, the GBP/USD pair could decline towards the 1.1600 level over the short-term.
Short-term bulls ideally need to move price above the 1.2650 level this week in order to invalidate the bearish pattern
GBP/USD technical summary
GBP to USD analysis indicates that the pair is only likely to remain under downside pressure while price trades below the 1.2330 level. A break above the 1.2600 level would be extremely bullish.
