GBP/USD Price Analysis: Bulls look to 1.297 and a 61.8% golden ratio

GBP/USD bulls moving in and eye a significant correction.
The M-information is compelling and eye a key confluence area.

Ross J Burland FXStreet

GBP/USD is under pressure but the bulls could be on the verge of making a move which would be anticipated to be a significant correction in the days ahead.

The following illustrates the market structure and prospects of a reversion along the Fibonacci retracement scale.

GBP/USD daily chart

The M-formation is a bullish reversion pattern with a high completion rate whereby the price would be expected to revert to the neckline of the pattern. However, in this case, the pattern is overextended:

In this scenario, the 38.2% Fibonacci could well be a more achievable target given the strength of the sell-off.

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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