GBP/USD Price Analysis: Bears stepping in at critical resistance

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  • GBP/USD is finding resistance on the 4-hour time frame and is due to test yesterday’s daily lows. 
  • A break of resistance, however, will open prospects of a daily bullish extension. 

GBP/USD has been in the hands of both the bulls and bears in a trapped environment, aka, the ‘bar-room brawl’. 

The price is testing a 4-hour resistance area which could prove to remain resilient in the sessions ahead, putting downward pressure in towards a restest of the prior day’s lows as illustrated in the following analysis:

Prior analysis, daily chart

 

Live market, daily chart

The bearish close on the prior daily candle has left a wick that would be expected to be filled in on the lower time frames as follows:

Live market, 4-hour chart

As per the analysis above, the price has been rejected multiple times at resistances and has consolidated at a confluence of the 61.8% Fibonacci retracement level.

This reinforces the downside bias within a trapped environment. 

 

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