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- GBP/USD bulls have been in the market while above key trendline support.
- Bears have been taking on the micro trendline, but the 1.2450 level is key.
GBP/USD bulls took over on Friday last week to print a fresh bull cycle high. Although we have since seen a slide from those highs, so long as the bulls commit to breaching the 1.2450 level, the bias remains bullish. The following is a top-down technical analysis that arrives at a bullish conclusion.
GBP/USD Daily Chart
The failed right-hand shoulder of the head-and-shoulders pattern leaves the bias bullish, considering it was the recent rally that took out the highs of the right-hand shoulder and the head.
GBP/USD H4 Charts
The trendline supports are key in this regard.
While the above is a theoretical schematic, it identifies the key areas of support and resistances in the four-hour time frame. The micro trendline is under pressure, but so long as the broader trendline remains intact, therefore meeting the 1.2450 level, then it would be reasonable to expect the bulls to move in again.
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