GBP/USD Price Analysis: Bears in control, but daily M-formation could be a spanner in the works

GBP/USD moves in on a weekly target at 1.2251.
Speculative shorts eye 1.2075 but the bulls eye a daily M-formation and 1.2450s.

Ross J Burland FXStreet

GBP/USD has been in the hands of the bears since breaking 1.3670 back in November 2021. The price is making its way into meeting a prior low of 1.2251 which guards a run to mitigate the imbalance of price between there and the 1.2075 May 18 2020 low:

From a daily perspective, the bulls are moving in, however, so there could be something of a correction underway at this juncture. The M-formation is compelling in this regard:

GBP/USD daily chart

The 50% mean reversion aligns with the neckline at 1.2450.

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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