The British pound has staged yet another bounce from the 1.3670 level against the US dollar, and bulls continue to defend this key technical price zone. The 1.3670 level is the neckline of a large head and shoulders pattern, which holds more than 200 pips of downside potential. The GBPUSD pair is still a sell on a weekly basis while the price is capped below the former key swing-high, around the 1.3780 regions.
The GBPUSD pair is only bullish while trading above the 1.3780 level, key resistance is found at the 1.3830 and the 1.3870 levels.
If the GBPUSD pair trades below 1.3780, sellers may test the 1.3670 and 1.3590 support levels.