GBP/USD – Is it forming inverse head and shoulder

Daily chart

GBPUSD D1 (03-23-2016 2138)

Cable is threatening to drop below 1.41 handle and rightfully so as Brexit fears continue to mount amid hawkish talk from Fed officials.

A recovery from from anywhere between 1.39-1.41 could signal a possible formation of the right shoulder..ie. the spot could then target 1.4480 (inverse head and shoulder neckline)

Most investment banks are calling for 1.35-1.36 levels in the next three months. In my opinion the move would happen, but only after bulls are trapped and for that the pair would rise to 1.4480-1.4530 levels.

Caution is advised…

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