An inversed head and shoulders probability sees the 1.61-1.62 resistance very possible but not a valid entry at time of writing. Sellers will be keen to protect their positions on possible reversals or exhaustions of the downtrend.
GDP quarter on quarter change in the U.K maintained its forecasted 0.7% for the 3rd quarter, raising Cable above 1.6000 albeit the figure still lower than the 0.9% registered in the 2nd quarter. The downtrend lines appeared to have been broken as moving averages moved flat and candles showing more support than resistance at the key price levels above 1.6000. U.S new home sales falls and supports GBP/USD towards 1.6100
The impending confirmation of an inversed head and shoulders on the H4 and H1 charts show a likely exhaustion of the downtrend but should not be taken as an entry just yet. Sellers may look to protect their positions as the market looks to consolidate between the key price zones that range from 1.625- 1.61.