- GBP/USD bears are licking their lips for the open next week.
- Supply structure is testing bearish commitments.
As per the prior analysis, GBP/USD Price Analysis: Bears are waiting to pounce below 1.2800 we have seen a classic squeeze to end the month as follows:
GBP/USD prior analysis
GBP/USD daily chart
It was noted that the daily chart showed the price structure as an M-formation. The neckline was regarded as a resistance area around 1.2770/1.2800. Wednesday was expected to be a sell-off to below the lows of the week's initial balance which left trendline support vulnerable looking ahead.
GBP/USD update
The price moved into a demand area and subsequently reverted to the support area. We are now testing dynamic resistance and set for the week ahead.
While the impulse is strong, the 78.6% holds. Bears will be looking for a deceleration on the lower time frames for a reversion in the impulse. A break of the lower lows opes risk into the 1.2550s.
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