- GBP/USD bears are licking their lips for next week’s open.
- The bid structure tests bearish commitments.
According to the previous one analysis, GBP/USD Price Analysis: Bears waiting for a break below 1.2800 we saw a classic end-of-the-month squeeze like this:
Previous analysis of GBP/USD
GBP/USD Daily Chart
It was noted that the daily chart showed the price structure as an M-formation. A breakout was seen as a resistance area around 1.2770/1.2800. Wednesday was expected to be a sell-off below the week’s opening balance lows, making trendline support vulnerable looking ahead.
GBP/USD Update
The price moved into the demand area and subsequently returned to the support area. We are now testing dynamic resilience and setting up for the week ahead.
While momentum is strong, 78.6% are holding. Bears will be looking for a slowdown on the lower time frames for the momentum to come back. A break of the lower lows leads to risk at 1.2550s.