GBP/USD Price Analysis: Bears Test Bullish Commitments at Key Daily Support Zone

  • GBP/USD bears are moving in and eyes are on trend line support.
  • The bulls are holding firm on a previous resistance structure on the daily chart.

the bears of the GBP/USD they have entered the market before the key economic data. UK labor market figures and UK gross domestic product data will be in the spotlight ahead of the US central bank’s interest rate decision. The US Consumer Price Index will also be in the spotlight on Tuesday.

In the meantime, the market has technically fallen into a support zone, and the following illustrates the prospects for a firmer test of trend line support in the days ahead.

GBP/USD daily chart

The decline runs into a previous zone of structure on the daily chart which now acts as support. It coincides with a 50% reversal zone on the chart, but is still far from the trend line support zone.

4 hour chart

The 4 hour chart shows that there could be resistance at a 61.8% Fibonacci retracement ahead of the bid which could be the bears’ last effort to make upside commitments at trend line support.

Source: Fx Street

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