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


Share:
  • 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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD retreats to 1.0750, looks to post small weekly gains

EUR/USD retreats to 1.0750, looks to post small weekly gains

EUR/USD lost its traction and declined to the 1.0750 area in the American session on Friday. In the absence of high-tier data releases, week-end flows seem to be impacting the pair's action heading into the weekend.

EUR/USD News

GBP/USD holds above 1.2550 ahead of the weekend

GBP/USD holds above 1.2550 ahead of the weekend

GBP/USD keeps its footing on Friday and trades modestly higher on the day above 1.2550 following Thursday's rally. Ahead of next week's all-important US inflation data and Fed policy announcements, modest US Dollar weakness allows the pair to stay in positive territory.

GBP/USD News

Gold struggles to find direction, holds steady near $1,960

Gold struggles to find direction, holds steady near $1,960

Gold price struggles to make a decisive move in either direction on Friday in the absence of high-impact data releases. The benchmark 10-year US Treasury bond yield stays relatively calm above 3.7% following Thursday's slide, limiting XAU/USD's action.

Gold News

Weekly Roundup: Binance US halts fiat services, Coinbase does business as usual, XRP hits key milestone

Weekly Roundup: Binance US halts fiat services, Coinbase does business as usual, XRP hits key milestone

The US financial regulator, the Securities and Exchange Commission’s (SEC) clampdown on exchange negatively influenced the crypto market and assets throughout the week. The lawsuits against Binance and Coinbase resulted in several challenges for the platforms’ users. 

Read more

The Week Ahead - FOMC, ECB and Bank of Japan, US CPI, China retail sales and Tesco results

The Week Ahead - FOMC, ECB and Bank of Japan, US CPI, China retail sales and Tesco results

A busy week is ahead, including meetings from the Federal Reserve, the European Central Bank, and the Bank of Japan. Data to be released includes US CPI and China retail sales. Tesco will also release results.

Read more

Forex MAJORS

Cryptocurrencies

Signatures