- GBP/USD bears take control and eye 1.2450s and below.
- There is a price imbalance towards the 1.2330s for the medium term.
GBP/USD was under pressure at the end of the week and has fallen towards a key area of support on the four-hour charts, in line with the bearish bias from a daily perspective. The following illustrates the market structure across the said time frames and prospects for further downside.
GBP/USD prior analysis
From a four hour perspective, the price was stalling on the bid into the remaining two hours of the candle. The price was anticipated to be resisted by the opposing bearish structure and result in a near term correction towards prior lows that meets the 50% mean reversion level:
Point A's support was cleared to confirm the downside prospects below the 50% mean reversion to open prospects of a run towards the 1.2450s ahead of the 1.2370s and the 1.2220s.
This was in line with the daily chart's bearish bias as follows:
GBP/USD live market, H4 & daily charts
The price is moving in on a demand area on the 4-hour chart and a meanwhile correction could be in store for the immediate future if not a downside continuation. A 38.2% Fibonacci correction could be on the cards.
If the bears break the support near 1.2450, this could be the last defence before a daily continuation as illustrated above.
