GBP/USD head and shoulders pattern targets 1.3250 on technical breakdown

GBP/USD has declined 0.5% (65 pips) to 1.3385 as a bearish head and shoulders pattern nears completion, suggesting potential for further downside toward 1.3250. The neckline support at 1.3380 is under pressure, with a confirmed break below this level likely to accelerate selling pressure. The pattern formed over the past three weeks, with the right shoulder completing at 1.3485 resistance. UK economic data remains mixed, with services PMI holding above 50 but manufacturing sector showing continued contraction. The Bank of England's cautious stance on rate cuts, despite slowing inflation, has failed to provide meaningful support for sterling. Technical momentum indicators including RSI and MACD show bearish divergence, reinforcing the negative outlook. Key support levels to watch include 1.3300 (December low) and the pattern target at 1.3250, while resistance stands at 1.3430 (20-day moving average) and 1.3485 (pattern high).