- 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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.