Forex News

02:24:03 24-01-2022

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. 

News provided by the portal FXStreet