GBP/USD Price Analysis: Bulls Look To 1.2450 While Bears Eye Test Of 1.2100


As per the prior analysis, GBP/USD bears step up the pace, eye break of 1.2150s, the British Pound remains within the bullish trend but is testing the commitments below 1.2200 and at 1.2150. The low of the week so far has been 1.2152 and the following illustrates the prospects of a deeper correction should the bears stay the course.


GBP/USD prior analysis

(Click on image to enlarge)

It was stated that GBP/USD has been potentially starting to move into a phase of distribution below the 1.2350, 1.2400 areas on the daily chart as illustrated above.

However, the British Pound's bullish trend would still be intact while structures 1.2150 and 1.1900 are yet to be broken:

(Click on image to enlarge)

A move below 1.2150 could, however, result in a deeper correction through the Fibonacci scale with eyes on a 50% mean reversion at 1.2120 and then a 61.8% ratio confluence with the upper quarter of the 1.20 area near 1.2070.


GBP/USD update, H4 chart

(Click on image to enlarge)

In the 4-hour chart, we can see that the price is forming a head & shoulders pattern with lower highs in the right-hand shoulder. This gives rise to the prospects of a break of structure in the 1.2150s for a move into testing the trendline support and commitments at 1.21 the figure for other sessions ahead. 

If the bulls were to commit around the dynamic support of the trendline, then the case for a higher bull cycle high would be on the cards with 1.2450 eyed. 


More By This Author:

USD To Be The Weakest Of The G10 Currencies In 2023 – SocGen
Shiba Inu Due For +10% Revaluation As US Dollar Weakens Substantially
S&P 500 Flatlines Before Nonfarm Payrolls

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.