GBP/USD Price Analysis: Eyes on 1.3550's and 1.3520's on the flipside

GBP/USD bulls are testing critical resistance.
A break of the 1.3520's will be significant for the medium term.

Ross J Burland FXStreet

GBP/USD is sitting pretty above key technical support across the daily, 4-hour and 1-hour charts. The market structure, however, has something to offer both the bears and the bulls and the following analysis illustrates the bias one way or the other.

GBP/USD daily chart

The daily chart shows that the price support at the neckline of the W-formation and after retracement back to the 50% mean reversion level, the bulls have moved back in there is a focus on an extension higher.

GBP/USD 4H chart

GBP/USD H1 chart

However, from the 1-hour chart, we can see that the price is actually breaking down following the break of the prior higher lows at around 1.3540. The price has since moved back into liquidity near 1.3550's. This could be the ticket for a considerable pivot to the downside and the 1.3520's then the 1.3490's will be eyed.

GBP/USD downside outlook, daily chart

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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