- GBP/USD bears are in control and have their eyes set on a daily downside extension.
- Bulls are testing the bear's commitments at critical hourly resistance.
Further, the start of the week's, GBP/USD Price Analysis: Bears testing bullish commitments at critical support, a trade-pick from this weeks, The watchlist: Bullish gold, CAD bullish, EUR/USD bearish discount, CHF on the march, the price has deteriorated within bearish territory.
The focus remains on the downside as per the prior analysis:
Prior analysis, daily chart
The bearish impulse has been corrected with the bulls taking on the bear's commitments at resistance.
A downside extension would be expected if bears step up to protect the resistance.
Prior analysis, 1-hour chart
Meanwhile, the hourly chart is telling ad offers a different vantage point.
There could well be some consolidation to come over the coming sessions prior to a break of the support.
A bearish head and shoulders could be in the makings.
Live market, daily & 1-hour charts
There are still prospects of a downside extension as the price continues to move lower.
Meanwhile, as per the hourly chart, (above), the right-hand shoulder was formed and gave additional conviction to the downside bias with a perfect break and restest of the neckline for an optimal entry point.
Bears that are late to the trade can contemplate an entry from the 1.3730/35 area where the 10 EMA meets a prior support structure that would be expected to act as resistance.
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.