GBP/USD Price Analysis: GBP/USD profit taking in play as US dollar stalls
- GBP/USD bears moved in on the weekly W-formation's target.
- The US dollar is now stalling which could give some support to cable.
As per the prior analysis, GBP/USD Price Analysis: Bears eye a trip to 1.3450 as per weekly chart, cable has indeed move din on the target area as follows:
GBP/USD prior analysis
The above was the W-formation's neckline targetted.
Below was the expected trajectory of the price action on the hourly chart, noting the prospect of a restest of the support (liquidity grab) and subsequent projected decline.
GBP/USD live charts
The price action and flight path followed suit into the weekly support target area.
At this juncture, much will now depend on geopolitics, global equities and the US dollar that will benefit from safe-haven flows or any uber hawkish surprise at the Federal Reserve meeting.
As it stands, the US dollar, as measured by the DXY index, is stalling for now:
The 61.8% ratio meets with prior highs as a firm layer of potential support for the sessions ahead.