GBP/USD Price Analysis: Bears testing bullish commitments at critical support


  • GBP/USD is in the throes of a downside extension on failures at daily resistance. 
  • Bears need to see a daily bearish candlestick close below resistance.

GBP/USD has run out of steam on the upside and bears are forcing the price back up against daily/4-hour support.

Bears are in anticipation of a downside opportunity and an extension of the broader bear trend. 

The following top-down analysis illustrates where the next trading opportunity could arise from a break of current support. 

Daily chart

The bearish impulse has been corrected with the bulls taking on the bear's commitments at resistance. 

A downside extension would be expected if bears step up to protect the resistance.

Bullish prospects, daily chart

With that being said, the currently daily candlestick will be bearish if we see a bearish close below resistance. 

If the price closes bullish, then the wick would be expected to be filled on lower time frames to the upside. 

 

4-hour chart

From a 4-hour perspective, the price is testing below the 21-EMA but stalling at a familiar support structure. 

The price can easily head higher from here, so bears will be watching for a break and restest of the structure that would then be expected to act as resistance. 

1-hour chart

Meanwhile, the hourly chart is telling ad offers a different vantage point. 

There could well be some consolidation to come over the coming sessions prior to a break of the support.

A bearish head and shoulders could be in the makings. 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD pressured toward 1.17 on Evergrande crisis

EUR/USD is extending its losses, falling toward 1.17. The safe-haven dollar is in demand as the crisis around China's Evergrande deepens and a global slowdown is feared. Tensions toward the Fed decision and also Germany's elections are taking their toll too.

EUR/USD News

GBP/USD tumbles under 1.37, succumbing to dollar strength

GBP/USD is trading under 1.37, suffering from robust dollar demand. The financial woes of China's Evergrande threaten a drop in global demand. Soaring energy prices are also weighing on sentiment. The Fed and the BOE are eyed later this week.

GBP/USD News

XAU/USD remains vulnerable while below $1761

Gold price is making a minor recovery attempt from six-week lows of $1742 amid a retreat in the US Treasury yields, as the risk-off mood remains at full steam.

Gold News

Four reasons why XRP price will crash to $0.65

XRP price set up a swing high on August 15 and breached this local top to create a new one on September 6. However, the second attempt failed as the market experienced massive selling pressure the next day. 

Read more

Canadian Federal Elections: Not a very crucial vote

Markets are taking a hands-off approach to Monday’s Canadian Federal election between Prime Minister Justin Trudeau's Liberals and Erin O'Toole's Conservatives. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures