Dollar index on the daily chart is moving in a falling channel pattern since its top in January 2017. The EURUSD pair along with GBPUSD are nearing the resistance zone on the weekly scale indicating a top formation. Development of 1st positive divergence on the daily chart supports stance for a bottom.
GBPUSD after peaking near 1.2675 retraced back to 1.2400 level. At present on the 4hr chart we are witnessing a AB=CD pattern completion which also lead to retest of previous breakout point. The pair is likely forming an inverted head and shoulder pattern with neckline placed at 1.2660. At current level the risk to reward ratio looks favorable for long position.