GBP/USD Price Analysis: Bears stacked up to test trendline support

GBP/USD bears are moving in and eye a downside break of trendline support.
The 4-hour 38.2% Fibonacci could be significant in the session ahead.

Ross J Burland FXStreet

The safe-haven US dollar rose on Tuesday as market sentiment turned risk-averse amid further worries about the banking sector. This has flipped the technicals in GBP/USD bearish once again.

GBP/USD daily chart

The Daily M-formation is in play. The bears will need to commit to any pullbacks, however, on the lower time frames as follows:

GBP/USD H4 chart

The pair is testing trendline support but should the bears show up at the 38.2% Fibonacci in any decent size, meeting the 4-hour charts M-formaiton´s neckline, then the bias will start to move bearish again.

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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