• GBP/USD bulls are taking control with eyes on a significant correction for the opening sessions. 
  • Bears will be lurking near old support on the daily time frame. 

The following illustrated a bearish bias on the daily chart for GBP/USD. The bulls are correcting the bearish impulse on the daily chart and a move into retest old support near 1.3440 could on the cards for the sessions ahead. However, bears will be looking for a discount should the resistance hold initial tests:

GBP/USD daily chart

As illustrated in the daily chart above, a move into the old support might be met with selling interest which would open risk of mitigation of the price imbalance in December's bull rally from near 1.3170.

GBP/USD H4 chart

From a 4-hour perspective, the bears will want to see the price rejected at the prior support base which means the trendline resistance is near a 50% mean reversion. A break below the horizontal support of 1.3380 would be expected to open the way to the daily target area. 

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