GBP/USD continued tumbling yesterday and managed to hit support at the 1.4120 (S1) barrier. The price structure on the 4-hour chart is lower peaks and lower troughs below the downtrend line taken from the peak of the 30th March, which keeps the short-term outlook negative. I would expect a clear dip below 1.4120 (S1) to open the way for the next support zone of 1.4050 (S2). Our momentum studies detect negative momentum and corroborate my view. The RSI stands below its 50 line and points down, while the MACD lies below both its zero and signal lines, pointing south as well. As for the broader trend, the rate is trading below the 80-day exponential moving average, which provided reliable resistance to the price action on the 17th and 31st of March. However on the daily chart, I see that a possible inverted head and shoulders pattern could be forming and as a result, I prefer to take the sidelines for now as far as the bigger picture is concerned. A break above 1.4500 would signal the completion of the pattern and perhaps bring a medium-term trend reversal.