Price action on the GBP/USD daily chart, as shown, appears to be in the midst of forming a tentative inverted head-and-shoulders/triple bottom base formation, as of early Monday morning in New York. If this is indeed the case, we are currently on the rightmost shoulder. An H&S reversal formation would only be valid if price rose up to break the neckline, as shown on the accompanying chart. Therefore, the neckline should serve as a strong resistance target going forward. Of course, any significant break below the 1.4470-1.4500 support zone will invalidate this pattern and should subsequently confirm a continuation of the general downtrend.
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