GBPUSD has finished the week at trading 1.23600 which is well below the resistance at 1.24400. After a dominant uptrend to 1.26470, the pair was unable to extend the gaining momentum towards 1.28000.
A possible Head and Shoulder pattern is forming on daily chart and a close below the channel line 1.22800 will initiate more selling pressure on GBPUSD. The Pair can push back to 1.18000 level or even to the recent low 1.14100 level.
The latest data shows that both the Flash manufacturing PMI and retail sales in March 2020 has been fallen sharply caused by the coronavirus (COVID-19) pandemic. Right now we are bearish on GBPUSD as long as 1.24400 and 1.25240 act as resistance.
One the other hand, if the pair able to break the resistance at 1.25240 and a daily close above this resistance will fade the bearish momentum. We could see pair will challenge the recent high at 1.26400 and can move towards the strong resistance 1.28500.
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This trading analysis is only for getting an idea about the current market situation. This is not a signal. These can be used for education purposes only.