GBP/USD has validated a short-term bearish head and shoulders formation. Monitor the declining trendline, as a break would invalidate this bearish formation. Hourly supports are at 1.5200 (05/04/2013 low) and 1.5027 (20/03/2013 low). Another resistance can be found at 1.5385 (15/04/2013 high).

In the longer-term, the break of the horizontal range defined by the strong support at 1.5235 (13/01/2012 low) and the strong resistance at 1.6302 (30/04/2012 high) calls for a further medium-term decline. However, the break of the resistance at 1.5321 suggests a stronger shortterm rebound.

Daily Technical Report