GBPUSD Watching 1.4000

The British pound is starting to recover higher against the US dollar, following a hawkish UK budget and minor weakness in the greenback. Lower time frame analysis shows that the 1.4000 resistance level is the neckline of a bullish inverted head and shoulders pattern. According to the size of the pattern, a break above the 1.4000 level could send the GBPUSD pair towards the 1.4140 level.

The GBPUSD pair is only bullish while trading above the 1.3960 level, key resistance is found at the 1.4000 and the 1.4140 levels.

If the GBPUSD pair trades below 1.3960, sellers may test the 1.3860 and 1.3600 support levels.