GBP/USD finds support at weekly R1

Even though both British and the US Manufacturing PMIs matched with experts' forecasts, the currency exchange rate did not manage to reach the weekly R2 located at the 1.3264 level. On the other hand, a strong support barrier set up by the weekly R1 at 1.3200 also did not let the pair to slip to the bottom. Thus, during the whole previous trading day the currency rate was moving along the above pivot point, basically, forming a head and shoulders pattern. From a technical perspective, the rate should leave the formation downwards and try to target the 1.3128 level. In order to do that, it would have to bypass the rising 55- and 100-hour SMAs. For this reason, the successful slip downstairs is doubtful. Most probably, the pair will continue attempts to climb upstairs.