GBP/USD Forecast: 10-DMA support stands exposed

18 Jul 2016

Pattern - Inverse head and shoulder on 4-hour chart

• Pair’s retreat from Friday’s high of 1.3480 followed by a day end closing at 1.3173 suggests the corrective move from the low of 1.2789 has ended and choppy trading is likely to be seen today.
  

• A failure to sustain above 5-DMA of 1.3230 would open doors for a drop to 10-DMA of 1.3093.
  

• On the higher side, we need a day end closing back above 1.3315 (23.6% of 1.5019-1.2789) levels to bullish momentum and could yield re-test of 1.35 handle.