GBP/USD Price Analysis: Bulls lookig for breakout to the topside


  • The daily chart offers compelling upside bias as bears start to run out of juice.
  • Bulls waiting on the sidelines for bullish structure at this juncture.

Following the progression of the price action and market structures across the various time frames in GBP/USD, it can be concluded that the bulls are now in the most favourable position.

As per the prior analysis, whereby the bears were taking up control, the price did indeed melt to the downside as forecasted.

Prior analysis, hourly chart

'Should the price drift higher without leaving multiple bottoms on an hourly basis, there could be prospects of sellers taking back control from resistance.

 Sellers would seek to break the hourly lows which would result in a bearish continuation towards the 50% mean reversion of the prior daily bullish impulse.'

Tracking price action on the hourly charts

New York price action, above, shows the price deterioration into demand territory, as forecasted. 

We have seen demand come in again in more recent trade as follows:

In Asia, the price is testing the bullish commitments and there are prospects of a higher low which would be a bullish scenario. 

Indeed, the bulls are now stepping back in and the daily conditions have ripened for a bullish advance but the price is so far contained by a build-up of lower time frame resistance. 

Daily chart

4-hour chart

Nevertheless, the 4-hour chart is forming a bullish reverse head and shoulders formation and on completion, the bullish price action could well burst into life. 

The right-hand shoulder of the bullish reverse head and shoulders is in the process of being formed. 

Bulls will want to see the price break the prior highs within this formation and hope for a discount on a retest of the structure before committing to the bullish thesis. 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds ground above 1.1500 ahead of Fed rate decision

EUR/USD holds ground above 1.1500 ahead of Fed rate decision

EUR/USD posts small gains above 1.1500 in European trading on Wednesday. Traders cash in on the latest US Dollar upswing heading into the US Federal Reserve policy announcements due later in the day, supporting the pair's rebound. ECB-speak and mid-tier US data are awaited. 

GBP/USD clings to gains near 1.3450 after UK CPI data

GBP/USD clings to gains near 1.3450 after UK CPI data

GBP/USD clings to small recovery gains near 1.3450 in the European session on Wednesday following Tuesday's sharp decline. The data from the UK showed that the annual CPI inflation edged lower to 3.4%, as expected. Later in the day, the Fed will announce monetary policy decisions.

Gold price extends the range play as traders keenly await Fed rate decision

Gold price extends the range play as traders keenly await Fed rate decision

Gold price reverses an Asian session dip and refreshes daily high in the last hour, though it struggles to capitalize on the move beyond the $3,400 mark. Rising geopolitical tensions in the Middle East, along with persistent trade-related uncertainties, continue to weigh on investors' sentiment and act as a tailwind for the metal. 

Avalanche Price Forecast: AVAX set to extend losses as Open Interest drops to one-month low

Avalanche Price Forecast: AVAX set to extend losses as Open Interest drops to one-month low

Avalanche (AVAX) trades in the green by almost 1% at press time on Wednesday, as it tests a crucial support floor that has held for over two months. The near-term outlook for the altcoin isn't promising, as Open Interest in the derivatives market has dropped to a 30-day low, and the technical outlook points to a steeper correction.

Chinese data suggests economy on track to hit 2025 growth target

Chinese data suggests economy on track to hit 2025 growth target

China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025