GBP/USD Price Analysis: Bulls packing a punch through 1.35 the figure, 1.3580 eyed
- GBP/USD bulls look to 1.3580s for the days ahead.
- Near-term bears are in anticipaiton of a deeper correction on the lower time frames.
GBP/USD Price Analysis: Bulls: In ealrier analysis in the US sesison, 1.35 the figure was noted as an anchor point from which bulls would be expected to struggle to pull away from. However, a key level of resistance was penertrated and a high high for the day was scoed all of the way towards 1.3520:
GBP/USD, prior analysis
The price had run into a wall of resistance as per the prior analysis on the 15-min chart above. A rejection in the first test there was expected to open risk back to the 61.8% Fibo of the 15-min bullish impulse near 1.35 the figure.
However, the bulls have taken the reigns and pushed on through as follows:
The price rallied to a high of 1.3518 and is about to leave a bullish daily closing candle for the day which opens prospects of a deeper retracement of the bearish daily impulse as per the chart below. In the mean time however, there is now bearish structure forming on the 15-min chart in the form of a potential bearish head and shoulders topping formaiton.
If trhe right hand shoulder forms followed by a subsequent break and close below the neckline near 1.35 the fifure, then the hourly 38.2% % Fibonacci retracement will be eyed for a potential support for the sessions ahead. Should the dollar remain under pressure, then the bulls will be encouraged to renegage at a discount and that could lead to a bullish exptensio into the imbalance of price between the highs and the late 1.3530s.
GBP/USD daily chart
GBP/USD Price Analysis: Bulls: Looking further a field, the daily M-formaiton is compelling, especially given the prospects of today’s bullish daily close:
The 61.8% Fibonacci retracement level has a cnfluence with the neckline of the M-formaiton. The W and M patterns have a high completion rate of the price being drawn back into the prior structure, aka, the neckline. In this case, near to 1.3580.
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