GBP/USD Price Analysis: Bears eye a trip to 1.3450 as per weekly chart
- GBP/USD is testing critical support on the hourly chart.
- The weekly W-formation is compelling as risk-off takes hold in the open.
GBP/USD's W-formation could see the price continue to correct for the week ahead which puts an emphasis towards 1.3450:
GBP/USD weekly chart
The W-formation is a reversion pattern where the neckline of the W is expected to be retested. Bears can move to a lower time frame in order to gauge for an optimal entry point from where the neckline can be bagged for profit:
GBP/USD H1 chart
The price needs to break the support and on a retest of this area, the bears will be looking for it to hold and confirm the downside bias towards the target area. A continuation higher in the DXY looks to be setting up for the day ahead with the risk-off market profile related to the Russian headlines.
Russia/Ukraine tensions rising: British gov says it has uncovered a plot by Moscow to install a pro-Russian leader in Kiev
DXY H1 chart
The pound is often regarded as a riskier currency to hold at times of stress due to the nations twin deficits, so this too could tip the balance the bear's favour for the opening sessions this week.