GBP/USD Price Analysis: Bears stepping in at critical resistance
|- GBP/USD is finding resistance on the 4-hour time frame and is due to test yesterday's daily lows.
- A break of resistance, however, will open prospects of a daily bullish extension.
GBP/USD has been in the hands of both the bulls and bears in a trapped environment, aka, the 'bar-room brawl'.
The price is testing a 4-hour resistance area which could prove to remain resilient in the sessions ahead, putting downward pressure in towards a restest of the prior day's lows as illustrated in the following analysis:
Prior analysis, daily chart
Live market, daily chart
The bearish close on the prior daily candle has left a wick that would be expected to be filled in on the lower time frames as follows:
Live market, 4-hour chart
As per the analysis above, the price has been rejected multiple times at resistances and has consolidated at a confluence of the 61.8% Fibonacci retracement level.
This reinforces the downside bias within a trapped environment.
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.