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.

Ross J Burland FXStreet

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.

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