GBP/USD Price Analysis: Bears giving way to the bulls again
|- GBP/USD bulls are taking on the bears with eyes towards a 50% mean reversion.
- The 38.2% Fibo comes in as the first upside target.
The bears could be throwing in the towel here in Tokyo as the US dollar starts to fall away. However, it is early days in the equities session in Asia still and it is yet to be seen if a high is being cut out currently or if a low is in place.
Nevertheless, the following illustrates a bullish bias in the case of a break of resistance and a move in towards the price imbalances that have a confluence of the 38.2% and 50% ratio retracements of the bear's tracks from overnight.
GBP/USD H1 chart
A move higher to mitigate the price imbalances could potentially lead to a test below the 1.2000 psychological level which could equate to a 25 pip run higher where bears could be lurking. If the bears were to commit to the course, then a downside extension could be on the cards for the forthcoming days.
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 and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.