- GBP / USD bulls are trapped below current resistance.
- The bears are pointing to a retest of the previous lows and the support zone.
The following is an analysis of the situation for GBP / USD, which is stuck in an uptrend. The M formation could be problematic for bulls caught in what is now current resistance.
GBP / USD daily chart
The bulls have been limited in the daily uptrend, although the price is still supported by the 20-day moving average.
However, the bulls will need to break out of the resistance or face bearish pressure below it, which could amount to a retest of the recent lows and support zone.
GBP / USD 4 hour chart
The bullish conditions on the 4-hour chart make it impossible to open lower positions. The bears will have to wait for the support to break.
On a clear breakout of the resistance zone, the most likely scenario at the moment is a retest of the resistance zone, awaiting a continuation of the daily uptrend.
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