GBP/USD Price Analysis: Bears eye a run to 1.2170, but watch out for the trap

GBP/USD bulls face the task of getting back over the line ahead of the NFP.
Bears are taking on a key layer of support with eyes to 1.2170.

Ross J Burland FXStreet

GBP/USD is on the defensive following a recent break of daily structure that led to a colossal sell-off in the London and New York equities opening hours. GBP/USD fell from a high of 1.2401 to a low of 1.2222 by the close of New York. Cable is pr4innting fresh lows in Tokyo of 1.2205 as traders look ahead to the Nonfarm Payrolls today in the US session while the price is destined for lower according to the following analysis:

GBP/USD daily chart

GBP/USD H1 chart

On the hourly time frame, we can see that the bulls need to show up or face prospects of a breakout:

With the test of the support, the question one needs to ask now is whether or not breakout traders chasing the move are about to get trapped:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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