GBP/USD Price Analysis: Bulls about to make another move? 1.2450 is key

GBP/USD bulls are in the market while above key trendline support.
Bears are taking on the micro trendline but 1.2450 is key.

Ross J Burland FXStreet

GBP/USD bulls took over on Friday to print a fresh bull cycle high and although we have seen a slide from those highs, so long as the bulls commit to above 1.2450, the bias remains bullish.

The following is a top-down technical analysis that arrives at a bullish conclusion.

GBP/USD daily chart

The failed right-hand shoulder of the head and shoulders pattern leaves the bias bullish considering the recent rally that took out the highs of the right-hand shoulder and the head:

GBP/USD H4 charts

The trendline supports are key in this regard:

While the above is a theoretical schematic, it identifies the key areas of support and resistances in the 4-hour time frame. The micro trendline is under pressure but so long as the broader trendline remains intact, meeting 1.2450, or thereabouts, then it would be reasonable to expect the bulls to move in 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.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.