GBP/USD Price Analysis: Bullish M-formation argues test of 1.3610

GBP/USD pressured by US dollar strength mid-week into demand area.
GBP/USD bulls look for bullish structure to target a reversion.

Ross J Burland FXStreet

GBP/USD bulls moving in as the US dollar's bid slows down into the end of the North American session. The price is now testing a demand area and the following illustrates prospects of an upside correction opportunity.

GBP/USD daily M-formaiton

As illustrated above, the daily chart has formed an overextended M-formation and the bulls could be encouraged to restest the confluence of the 61.85 Fibonacci level and the 22 Sep lows.

This can be targeted from a lower time frame and executed when a bullish structure is forming.

Further out, it is noted that the price is meeting a demand area, so there is a reasonable probability that the price will start to correct and form a bullish structure in a period of accumulation:

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.

USD/JPY opens the door to a test of 155.00

USD/JPY accelerates its severe pullback and hovers around the 155.50 region on Thursday. The sharp decline in spot comes as investors continue to assess a potential rate hike by the BoJ as soon as its September 18 meeting.

AUD/USD ranges above 0.7150 despite upbeat Chinese PMI

AUD/USD struggles to capitalize on the previous day's bounce from a nearly two-week low and ranges above 0.7150 in Asia on Thursday, as dismal Australian trade data counter upbeat China's RatingDog Services PMI. However, the pair's upside remains in check as the US Dollar stalls the weak ADP report-led slide amid escalating US-Iran tensions and firming September Fed rate-hike bets.

Gold defies sellers around $4,500

Gold adds to Wednesday’s gains and reclaims the area beyond the key $4,500 mark per troy ounce on Thursday. The strong decline in the US Dollar coupled with further weakness in US Treasury yields across the board also bolster the move higher in the yellow metal.

XRP defends key support, XLM awaits breakout as derivatives strengthen

Ripple (XRP) and Stellar (XLM) show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages (EMAs).

Bitcoin steadies as markets turn cautious ahead of key economic data

Bitcoin (BTC) steadies around $77,700 on Thursday, trading sideways after its sharp rally during the second half of August. Institutional demand supports this range-bound price action, with spot Exchange Traded Funds (ETFs) recording mixed flows so far this week

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.