Chart Of The Day: GBP/USD

is about one positive headline away about Brexit to breaking the 1.3000 level. I wanted to note a few things that are developing currently.

1) The 200-day moving average held very well a couple weeks ago near 1.2700.

2) The neckline of an inverted head and shoulder pattern is at the 1.3000 level.

3) After the breakdown of the wedge in August and break of the uptrend line (pink) the pair could find the market bearish (and wrong footed) on a move higher above the 1.3000 level.

Like I said, we are one positive headline from a breakout higher. I guess you could also argue that we are just one negative headline away from revisiting the 200dma, which is about 200 pips lower as well.

GBP/USD 1-Day Chart.
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