GBP/USD Price Analysis: Bulls meet key resistance, bears lurking
|- GBP/USD bears eye 1.2370s and then the trendline support into the congestion towards 1.2350.
- Bulls look for a move to test resistance within the right-hand shoulder.
GBP/USD bulls are stepping in at support and eye an upside continuation to test daily resistance again. The following illustrates a scenario whereby we could see a shorter-term bearish correction playout before the next bullish impulse.
GBP/USD daily charts
The price is sideways with a bearish bias in the main, longer-term.
The right-hand side shoulder´s bullish thrust was strong and this signifies that there could be more upside to come. This can be read as follows on the four-hour chart:
GBP/USD H4 chart
The price has rallied into a high-volume candle and has met resistance. This leaves the meanwhile focus on a correction into the 1.2370s and then the trendline support into the congestion towards 1.2350. Bulls could be encouraged to reengage at a discount and this could be the fuel for the next bullish impulse for a higher high within the right-hand shoulder.
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.