GBP/USD Price Analysis: Bulls about to show their commitments
|- GBP/USD´s M-formation as a reversion pattern could see price drawn to the neckline.
- GBP/USD is meeting a 78.6% Fibonacci level of the prior bullish impulse.
As per the prior analysis, GBP/USD Price Analysis: Bears seek a break of structure while price slows below 1.2200, the bears are staying the course in a drift to the downside ahead key US data today.
GBP/USD prior analysis
It was stated that the price was still very much on the front side of the trend. However, the analyses also noted that the hourly micro trendline was under some pressure while a break of the 1.2140 structure was needed to cement the bearish case for the day ahead.
GBP/USD update
The price has fallen into a key territory where demand might be expected:
The M-formation is a reversion pattern that tends to see the price drawn to the neckline. The price is also meeting a 78.6% Fibonacci level of the prior bullish impulse which may see a deceleration in the downside for the hours ahead. Resistance at the neckline near 1.2175 could see a rejection and a subsequent downside continuation to fully test the bull´s commitments in the 1.21s.
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.