GBP/USD Price Analysis: Bears on the verge of a fresh wave to the downside
- GBP/USD bears are seeking a break from 4-hour resistance structure.
- A downside extension targets a 1.3725 area and beyond.
As per the prior analysis, GBP/USD bears piling in at critical daily resistance, the bears remain in control and target a downside daily extension.
Prior analysis
The bears will be lining up for prospects of a downside continuation following the test and failure of the 61.8% Fibonacci retracement level of 1.4000 which is a historic resistance level.
With that being said the bear will be prudent to wait for a break of both the monthly dynamic and horizontal support below 1.3940:
A monthly close of 1.3780 or lower will be highly bearish and will have put a triple monthly top in place:
Live market, daily chart
The bears are making progress.
4-hour charts, (1)
The bears could well start to engage at this juncture with the price meeting the 21-EMA.
4-hour charts, (2)
Failing that, there could be a second wind from the bulls until he 61.8% Fibo and confluence of structure at the round 1.3950 level.
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.
