- GBP/USD bears take control at the start of the week.
- Bulls in anticipation of demand from daily support, eye weekly bullish close and 1.34 the figure.
GBP/USD hs started off the week on the back foot which is starting to invalidate the M-formation’s reversion prospects on the weekly chart.
GBP/USD weekly chart
The invalidation is not complete until the close of the weekly candle, so it is still early days, but it is not a positive start for the bulls in anticipation of a run to the 1.34 area.
GBP/USD daily chart
The price, however, is being held up at what could be a support zone on the daily chart. This is an old area of resistance and an M-formation could be marked so long as the forthcoming sessions are bullish.
Zooming in, the reversion pattern is clearer and a break of the neckline near 1.3150 could result in a bullish continuation, leaving prospects of a reversion into the weekly M-formation’s neckline near 1.34 the figure. However, a break of the recent lows and 1.30 the figure will leave the focus on the downside.