- GBP/USD bulls stalling ahead of longer-term resistance.
- GBP/USD hangs over key 1.2250 structure that guards a significant bearish correction.
GBP/USD is under pressure as the US Dollar corrects. Since the prior analysis, the Federal Reserve has driven markets to reconsider their US Dollar forecasts. However, there are prospects of a deep correction that would be expected to cap the Pound´s advance.
DXY H4 chart
The bulls are moving in from support.
GBP/USD technical analysis
GBP/USD is moving in on the longer-term chart´s head shoulders neckline:
GBP/USD H1 chart
However, as the greenback firms, there is the risk of a break in the structure around 1.2250 which will open risks of a significant bearish correction for the foreseeable future.
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