The British pound sterling gave back the gains as the technical resistance near 1.3000 level holds strong for now.
As a result, price closed with a strong bearish candlestick on Tuesday.
A follow-through to the downside could confirm further weakness. However, the unfolding price action could see a possible inverse head and shoulders pattern taking shape.
Therefore, watch how the GBPUSD reacts above the 1.2750 level. A reversal off this level or above could potentially confirm the inverse head and shoulders pattern.
This will make the 1.3000 level as the key neckline resistance.