We're closely watching the British pound vs the US dollar on the daily chart, and recent developments are signaling a notable shift in momentum:
🔹 Break of the 2025 uptrend
🔹 Completion of a Head & Shoulders top — a classic bearish reversal pattern
🔹 Neckline break confirms downside risk
This formation implies a measured move target from ~1.34–1.38, projecting a decline of 400 pips to around 1.30, aligning neatly with the 200-day moving average at 1.2977.
🧭 Trading Strategy:
While the initial breakdown is bearish, the RSI shows bullish divergence, suggesting a short-term bounce before resumption of downside.
Key resistance levels to watch for re-entry opportunities:
• 📌 1.3435 – previous highs (late 2024)
• 📌 1.3485 – broken uptrend
• 📌 1.3510 – 55-day moving average
• 📌 1.3530 – short-term downtrend line
🎯 A rally into this zone would offer a strategic entry point for downside exposure.
Let us know how you're trading this move — are you fading the rally or waiting for confirmation?
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
🔹 Break of the 2025 uptrend
🔹 Completion of a Head & Shoulders top — a classic bearish reversal pattern
🔹 Neckline break confirms downside risk
This formation implies a measured move target from ~1.34–1.38, projecting a decline of 400 pips to around 1.30, aligning neatly with the 200-day moving average at 1.2977.
🧭 Trading Strategy:
While the initial breakdown is bearish, the RSI shows bullish divergence, suggesting a short-term bounce before resumption of downside.
Key resistance levels to watch for re-entry opportunities:
• 📌 1.3435 – previous highs (late 2024)
• 📌 1.3485 – broken uptrend
• 📌 1.3510 – 55-day moving average
• 📌 1.3530 – short-term downtrend line
🎯 A rally into this zone would offer a strategic entry point for downside exposure.
Let us know how you're trading this move — are you fading the rally or waiting for confirmation?
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.