GBP/USD Price Analysis: Bears in control, but daily M-formation could be a spanner in the works
|- GBP/USD moves in on a weekly target at 1.2251.
- Speculative shorts eye 1.2075 but the bulls eye a daily M-formation and 1.2450s.
GBP/USD has been in the hands of the bears since breaking 1.3670 back in November 2021. The price is making its way into meeting a prior low of 1.2251 which guards a run to mitigate the imbalance of price between there and the 1.2075 May 18 2020 low:
From a daily perspective, the bulls are moving in, however, so there could be something of a correction underway at this juncture. The M-formation is compelling in this regard:
GBP/USD daily chart
The 50% mean reversion aligns with the neckline at 1.2450.
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