GBP/USD Price Analysis: Trapped bulls below key M-formation's resistance
|- GBP/USD bulls are trapped below current resistance.
- Bears eye a retest of the prior lows and support structure.
The following is an analysis of the state of play in GBP/USD which is stalling within a bullish trend. The M-formation could be problematic for trapped bulls from what is now current resistance.
Daily chart
The bulls have been capped in the daily bull trend, although the price remains supported by the 20-dma.
However, bulls will need to break the resistance or face bearish pressures below it which could equate to a restest of the latest lows and support structure.
4-hour chart
Bullish conditions on the 4-hour chart make it impossible to short. Bears will need to wait for the support to break.
On a clean break of resistance, the most probable scenario at the moment, a restest of the structure will enable bulls to engage in what would be expected to be a continuation of te daily bull trend.
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