GBPUSD : Hovering the neckline of the Head and Shoulders pattern

The British Pound still remains vulnerable to the US Dollar as the new week begins. On the daily chart below, GBPUSD can be seen hovering on the neckline of a bearish Head & Shoulders chart formation around 1.2648. Watching how price action develops in the near term will be key. A breakout lower, with confirmation, could open the door to an increasingly stronger bearish technical bias.

That would place the focus on the 200-day Moving Average (MA), which could reinstate the broader upside focus. If not, prices may revisit the May low of 1.2308. Otherwise, a turn higher places the focus on key resistance around 1.2848. Further gains beyond that sits the 1.3 inflection point which was established in March 2022.