GBP/USD: Potential head and shoulders base- Lloyds

Analysts from Lloyds Bank point out that the GBP/USD pair held above 1.3065, consistent with the development of a potential head and shoulders base.

Key Quotes:

 “GBPUSD again tested the lower bound of its interim range after the weak one-off “flash” UK PMIs, but, importantly, held the 1.3065 level. While above here, price action is consistent with the development of a potential head and shoulders base.”

“A rally through 1.3315 is needed to add conviction to this view, and would open up a re-test of the 1.35-1.38 region. A break below support at 1.3065-1.2945 would expose the range lows at 1.2798.”