GBP/USD Price Analysis: Bears seeking the next corrective leg to the downside

GBP/USD is giving mixed structure across the time frames, but the bias is bearish near-term.
The monthly rally could be on course for a meaningful correction.

Ross J Burland FXStreet

The bears have stepped in and the price is currently testing a critical daily resistance structure as well as a 4-hour time frame resistance level.

The following is a top-down analysis that illustrates where the next trading opportunity could emerge from a 50% mean reversion of the 4-hour bearish impulse.

The price is being resisted and could be headed for a correction to test the prior resistance area.

However, the upside would still be the base case so long as the old resistance holds as new support.

Weekly chart

The weekly chart shows that te price is holding above weekly support which is counterintuitive to the monthly outlook.

The price has been resisted at the M-formation's neckline while trading below the dynamic trendline support.

Further pressures will likely see the price buck the trend and correlate with the monthly near term outlook and bearish bias.

4-hour chart

The price has been testing the fresh resistance in recent trade and trigger a move to the downside from this 50% mean reversion.

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.