Previously, around the price zone of 1.6780-1.6800, the GBP/USD pair found solid resistance that provided enough supply for two months until bullish breakout took place on May 1.

The recent lows at 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.

The daily chart shows successive bullish breakouts expressed above 1.6850 (the upper limit of a previous congestion zone), then above 1.6930 (the upper limit of the ongoing bullish wedge). The bullish momentum wasn't strong enough to allow the bullish breakout to pursue towards further targets. Instead, this breakout lost its bullish momentum during the last three days of consolidation as depicted on the chart.

Price levels around 1.6990 provided evident rejection. This paused the ongoing bullish momentum (Pay attention to the last three daily candlesticks including Friday).

The lower limit of the bullish WEDGE was broken down on Friday showing a full-body bearish daily candlestick.

On Monday, the bears applied bearish pressure at retesting of 1.6900 (backside of the broken wedge). This enhances the bearish pull-back towards 1.6767 in the medium term.

As long as the ascending bottoms established at the uptrend around 1.6675 and 1.6775 remain intact, the market will keep its bullish momentum.

The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing market demand has been fulfilled around 1.6990 which led to price decline again.

A bearish impulse is taking place now towards 1.6820-1.6775 thus forming the right shoulder of a possible Head and Shoulders reversal pattern with neckline located around 1.6830-1.6810.

Price action should be watched around neckline to determine if the ongoing bearish momentum is going to be contained above 1.6800 again or the reversal wedge pattern would apply enough bearish pressure to confirm the ongoing reversal pattern.

Projection targets of this pattern extends down to 1.6775, 1.6720 and 1.6690.