GBP/USD Price Analysis: Bullish M-formation argues test of 1.3610
|- GBP/USD pressured by US dollar strength mid-week into demand area.
- GBP/USD bulls look for bullish structure to target a reversion.
GBP/USD bulls moving in as the US dollar's bid slows down into the end of the North American session. The price is now testing a demand area and the following illustrates prospects of an upside correction opportunity.
GBP/USD daily M-formaiton
As illustrated above, the daily chart has formed an overextended M-formation and the bulls could be encouraged to restest the confluence of the 61.85 Fibonacci level and the 22 Sep lows.
This can be targeted from a lower time frame and executed when a bullish structure is forming.
Further out, it is noted that the price is meeting a demand area, so there is a reasonable probability that the price will start to correct and form a bullish structure in a period of accumulation:
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