Gbpusd is currently trading just above its 4hr range resistance line at 1.6460. This level is important also because of the fact that additional support is offered by daily highs that were breached at that level. As is indicated in the charts below though, resistance is just ahead at the underside of the 4-hour trendline at 1.6505, and further, at daily trendline and horizontal resistance line at 1.6530s.

The levels mentioned above are important in determining further direction going forward. I will be watching for a 4-hour/daily breach of 1.6540 for potential longs targeting 1.6615 high, and then the daily resistance at 1.6720. To the downside, a breach of 1.6450 will probably result in a push towards 1.6340 mid-range support (red horizontal line on 4hr chart), and even a retest of the range support at 1.6250.

At just a glance, the daily chart does seem to have set up an inverse head and shoulders pattern, with the right shoulder at 1.6230s, and the potential neckline resistance at the infamous 1.6340 level. This pair is particularly interesting because of its clearly defined resistance and support levels, and I will be watching with interest to see what will unfold.

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